Invoice received in 2006. No entry that payment made in 2006. 2006 Closed. In 2007, wish to remove payable from the books. Can an entry be made that removes the payable, affecting balance sheet only, and not P&L?

In 2007 when you pay the bill, the JE would be:
Dr. AP
Cr. Cash

Both affect only the balance sheet, neither account touches the P&L Statement