PO Prepayment - Subsequent manual payments still debits Prepaid exp account, if prepayment is partial

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Posted on by Jothi Krishnan N

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Hi,

We have made a partial prepayment on a PO and it debited Prepaid Expense account . And then entered an Invoice and it credited the Prepaid Expense account for the prepayment amount, and the balance credited to Contra account.

Now when we enter another manual payment, and apply against the same Invoice, it still picks up the prepaid expense account( since the prepayment is attached to the Invoice) and debits the same prepaid amount. But it should leave the Prepaid expense account and pick up only the contra account on the subsequent payments. Anyone came across this and have any solutions? Thanks in advance.

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