Refund of unutilized Prepayment advance

Hi,
Employee has taken advance and there is un-utilized prepayments.

At the time of settlement there is some un-utilized prepayment for which employee refunds the money.

Really worried as there is no standard process to achieve this. If we do the receipt entry in AR, there will be unutilized balance in prepayment.If we do a refund entry in AP, need to create multiple entries like standard invoice and adjustment with prepayment & create credit memo and do a refund entry in payment.

Please suggest if there are any workarounds or any other wayouts.

Thanks in Advance.

Amar