Prepayments option

https://central.xero.com/s/article/Apply-a-prepayment-to-a-sales-invoice


Overpayments option

https://central.xero.com/s/article/Apply-an-overpayment-to-a-sales-invoice


Note that both overpayments and prepayments sit in Xero until applied to an invoice.


This is a great article explaining the difference and benefits of each. While it is a Canadian article the way it works is the same in all countries.

http://www.fuelaccounting.ca/prepayments-and-overpayments-in-xero/



If you prefer to raise future invoices to apply payments to see raising invoices for future rent