When Posting definitions are turned ON in the General Ledger parameters, prepayment functionality will not be available for use in Purchase Orders and Invoicing.
Since turning off Posting definitions may not be an option for a lot of users, instead, do not use the prepayment functionality at all and create service items specifically denoted for prepayments to include in your PO and for invoicing.
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I have the same question (0)Hello Ryan,
Thank you for using Microsoft Dynamics Communities. I conducted some research and there was a quality report that was logged for this question. Please see the link below. The recommendation to handle this scenario is by using service items to be included with your PO to denote the prepayment.