AutoInvoice is not matching the Project Invoice with the Prepayment applied on agreement

Hi,

We need to apply Prepayment on Project Invoices. I am using EBS Release 12.1.
 The problem i am facing is that AutoInvoice is not automatically matching Invoice with the prepayment applied on agreement .

Brief Steps:

1) Create Contract Project
2) Distribution Rule= Cost/Event
3) Create Approved Cost and Revenue budgets and baselined them
3.1) Create Agreement of amount 50000 and make funded completely and  baselined
3.2) I am NOT selecting "Advance Required"  on Agreement screen, as far i understand, it is use when whole agreement/project is funding byapplied advance receipt and it is not my case. (please correct me if I am wrong )

4) In AR I create Receipt with an amount 10000