This blog post and YouTube video has been addressed more extensively in my published book on Business Central ledgers. The book covers many, many other topics like Order To Cash, Procure To Pay, Ad-hoc Analysis.
Download pdf sample.
In this video I go over prepayments we need to send to vendors. I cover instant payment of prepayment as well as payments applied after invoice is created.
Have a look and go execute a purchase order with prepayment yourself.