I created a prepayment from a purchase order and after saving it, the apply button showed up which should not because the auto apply check box is marked in the accounting preference but then i noticed two things
1. When creating a bill for that purchase or any purchase that has a prepayment to it, and i save it… it doesn't reduce the amount on the bill meaning i have to make full payment at the point of creating a bill payment
2. I tried to click on the apply button on the prepayment for one of the purchase and it took me to the vendor prepayment application page however, on that page no bills were showing on the apply subtab then i figured the account that defaulted on the account field is an inventory account but when i changed it to a payables account, the list of bills to apply the prepayment to showed up. This is a really stressful and long process becuase i want to understand why the prepayment was not auto applying and why the prepayment application page