This article is for the case when you have created a purchase order and need to prepay for purchase orders before the goods on the PO is received.
First, you would need to go to Setup, Entity settings, Check the checkbox
Show Purchase Order Item Prepayment inside Bill Item Form section. Save the setting by clicking on Update Configuration.
First, create the purchase order. To pay for the entire purchase order or a percentage of it, create a new bill. In the bill item form, Click on the list under Prepayment for Products on P/O. This shows you all open PO items without prepayment, choose the items you are prepaying. A new bill item is then created. The quantity on the bill item is locked to the total quantity on the purchase order line. To change the amount you are paying for the PO, change the price to control the final amount.
When the bill is posted, the system would post an entry that debit the supplier prepayment account and credit the accounts payable.
When posting the shipment receipt on goods on a PO that is prepaid , the system would find out if any quantity on the PO is already paid (on a bill). If the received quantity is considered prepaid, the system would debit inventory asset and credit supplier prepayment for this supplier (normally accounts payable is used).