Update or delete without prior input operation

["Ala, Michael A" <michael.ala@xxxxxx>]

 C     DVNDNO        CHAIN     PAYABLES       
C                   DOW       NOT %EOF       
C                   READE     PAYABLES       
C                   IF        DREFNO = PREFNO
C                   DELETE    PAYABLES       
C                   UPDATE    PAYABLES       
C                   ELSE                     
C                   READE     PAYABLES       
C                   ENDIF                    
C                   ENDDO                  

In the code sample you are deleting then updating you can do one or the
other that is why you are getting the error 

(What are you trying to update you deleted the record?)

HTH

Mike