How do you handle Vendor Down payments with Vendor Prepayments? for the Down payments we get three vendor invoices, 1 for 40 % down payment 2nd 40 % upon receipt and 3rd 20% net 30 receipt. So it's 1 Purchase order that you will get 3 vendor bill for.

create a vendor prepayment for the whole amount. Click Apply in the record and select the vendor bills you want to pay using the prepayment(those three vendor bills in this case). It will create a Vendor Prepayment Application record which lists all the vendor bills it is applied to. The Vendor Prepayment record status is now either Fully Applied or Partially Applied depending on if you used up the whole amount or not.

so you would create three vendor bills? from the POs? these bills needs to be associated with POs they are not free standing bills

I think as of now 1 PO can only have 1 Vendor Bill because even if you edit the vendor bill amount to be lower than the PO amount, it doesn't detect it to be a partial billing but I'm not 100% sure. Do those vendors bills have different reference numbers? I had a client that had a similar scenario but was related to only 1 vendor bill reference so I suggested to just create 1 vendor bill then make several bill payments for the partial amounts. In that case then several vendor prepayment applications.

Yes they have different reference numbers that’s the issue

In that case maybe a workaround would be just to create a custom field in the Vendor Bill for the PO relation or just through Memo. No way around the 1 PO:1 VB via standard approach at least.