You're welcome, @Nancy, and thanks for getting back to me, too.

Let me get those questions cleared up.

In step 4 of setting up the payment item, enter the name for this payment in the Item Name/Number field. (See the first photo above) For example, "Partial Payment". The name that you type in here would also show on your invoices.

Since this is a payment type, we'll need to track these amounts to an account. You would want to choose "Group this payment to undeposited funds" if you want them to post to the Undeposited funds account by default. Just as the amounts you track in the Undeposited funds account, you'll need to deposit the payments to clear them (Banking > Make Deposits). On the other hand, if you want to deposit it to a bank account, income account, or a specific account, you would choose "Deposit to". Yes, this part of the steps will affect your reports.

Let me know if you have any additional questions, and I'll be glad to answer them for you.