When we register a prepayment from the POS, it is automatically registered in the BackOffice a payment journal to the Customer with the amount of the prepayment decreasing the amount to be paid in the sales order.

According to the laws of many european countries the VAT that corresponds to the payment has to be declared at the moment of the payment (in D365 we have prepayment invoices) to the authorities.

Suggestion to manage this scenario: When we generate prepayment from the POS, D365FO should generate automatically a free text invoice to get the tax registered, settling the transaction with the payment done. When the reception is posted the free text invoice should be credited to avoid the duplication of the invoice.