if suppose we have prepayment of 10,000 and standard invoice of 8000.How should it be adusted in ap (let me know step by step process)how 2000 is adjusted

When you apply Prepayment on Invoice Standard, at Schedule Payment tab.. you will see "Amount Paid" = 8000 and "Amount Remaining" = 2000. So you have to do the payment transaction for 2000 to this invoice. 8000 will be adjusted when you apply Prepayment on Invoice (Action > Apply/Unapply Prepayment) and 2000 will be adjusted when you do payment.

Please see the Prepayment Accounting Entries in this link. http://oracleebspakistan.wordpress.com/2008/11/06/ap-accounting-entries/

Hi We have achive this through "apply/unapply" prepayment functionality... We have 2 Options Option1: Raise the std invoice with actual amount i.e 8000 and apply to the Prepayment amount of 10000, the submit Memo of 2000 to the Organization. Option2: In this case we will raise std invoice amount of 10000 and in the distribution we have to split that to 8000--- for actual exp incureed and the remaining 2000 for Dummy exp account and then apply the prepayment of 10000 to the same std invoice. Now you raise the Memo with 2000 and in the distribution you have to provide the Dummy Exp Account then pay this memo through Refund payment method.. Regards, Venkat