Answer: There are certain situations where a deposit is required from either buyer or seller. In such cases, you may issue a prepayment invoice, sometimes called a prepaid invoice.
A prepayment invoice is a document used to record advance payments from suppliers or clients. It contains the amount to be prepaid on a sales order and enables you to invoice deposits required from clients or sellers.
Prepayments can be calculated based either on the percentage of the total order or have a fixed amount.
Step-by-step explanation: