I have implemented in app billing in my Android app and it is working perfectly, i have a small issue and i am unable to solve it yet.
I am not keeping any record of purchase items in local DB or any third party server.
So, when i am requesting an already purchased item, in app API is showing a dialog having the text “You already own this item”, Pressing OK button of dialog app is navigating to required activity. Here i want to remove this dialog, but as this dialog is handle by in app API, so i am not able to remove this dialog. Is there any way to remove this dialog, so that it doesn’t appear in activity. Can any body help any clue to solve this small issue.
I am attaching the screen shot of dialog appearing in my activity.

I have implemented in app billing in my Android app and it is working
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You have the answer in your question. You should keep track of items that are already bought.