[joannes]

I have no history on the liability. It's been sitting on the balance sheet for 2 years now.

[hamzashakaa]

First you should order a statement of account from the supplier related to this payable and make sure that the supplier will not claim the amount of liability and that the liability should not be legally paid. Then you can close the payable amount to other revenues (Settlement of accounts payable).

Dr. Accounts Payable
Cr. Other Revenues