According to Jim Recap: The Christmas Party

As the joyous holiday approaches, Cheryl begs Jim to make peace with their neighbor so that they stand some chance of getting invited to the neighborhood Christmas party, but in his typical fashion, Jim botches the job, instead electing to back his truck into the nativity scene and behead one of the wise men. This doesn't exactly have the desired effect, so Cheryl takes things into her own hands, and apologizes for Jim by buying a new wise man.

When this gets the invite, everything looks like it will work well, until Jim finds out what happened, and he stages a boycott, and rescinds the invitation. In like fashion, the neighbor takes back his invitation - but the rest of the family is able to go to the party. Jim is happy, and plans to stay at home by himself.

This works well until he gets bored, so he puts on Andy's Santa Claus suit and heads across the street. All is well with this plan until he reaches for the shrimp, which is behind the cheese dip, and the beard goes right into the cheese. Not wanting to ruin a $300 beard, Andy and Jim head to the bathroom to try and clean it out.

A super-suction toilet, however, foils that plan by sucking it right off of Jim's face. Strangely, however, it doesn't have enough power to take it all the way out, and the water quickly overflows, so the two of them decide they need to get out of there, and they scramble to get out of the window. Only Jim can make it, so Andy has to try the front door.

Somehow they manage to get away without getting caught and in a show of sportsmanship, when Cheryl shows up with the "news", Jim offers up their house for the party, and all works out well - until the plumber calls reporting that he found the cause. Even that might have been okay, but Cheryl answered the phone and took the message. Whoops. Looks like Jim is going down in flames on this one. But luckily, the snow starts to fall, and it isn't all bad. Except for the neighbor getting sick on the front lawn from all the egg nog.

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