I want to share an example how we can applied and release a prepayment in Accounts Receivable document. We can applied it either fully or partially depends on our company scenario or on customers demand.
So lets start it:
Create a Sales Order > Confirm the Shipment > Create the Invoice and release it.
Then goto Payments and Applications screen > select the Prepayment document type from the drop down. (See in attachment) > on the Documents to Apply tab of the Payments and Applications form select the Invoice reference # for which you want to do the prepayment .
If you want to do full payment as prepayment then leave the Amount Paid field as it is or for Partial prepayment decrease the Amount paid > save and release it.
Comment below if you have any Questions . Thanks for reading.