Recording prepayment to supplier and subsequent partial fulfilment of order

Hi Genreve_S​ & Shella_A​ 

This is how I tackled the problem.

• The prepayment was paid to the supplier using a credit card and the transaction appeared in the bank feed.
• I allocated the transaction to "Deposits to Suppliers" account.
• The new invoice (bill) with items was entered as a purchase like any other invoice.
• I went into the bill and allocated the amount to purchase and freight as itemised.
• On the next line underneath, I selected category as "Deposits to Suppliers" and entered the entire bill amount as a negative and comment, 'Apply prepayment to invoice'. Bill has now reduced to zero.
• Going into the Chart of Accounts, I can see the amount has reduced. 

I think this make sense.