I am more familiar with the AR side, but it sounds similar.
Step 3 is not required at this point, it can be done at a later time.
During Step 5, the balance from the Advanced should reduce the amount for the Receipt Invoice.
Step 6 does not apply here.
So basically after this workflow, you would have 2 AP Invoices, one Adv Bill and a Receipt, how you pay them it is up to you.
The process for Prepayment, which is different from Advance Billing, as I understand it is like this:
- Create Misc Payment and mark it as Prepayment in Payment Entry, this creates a debit memo.
- After the Receipt AP Invoice is posted you can use Apply Debit Memo/Prepayment. (Not sure if the Ref Invoice field would also work here)
Like I said, I’m used to this process on the AR side mostly and only as a developer, so the actual business process might be different.