How do I apply a credit balance to a future invoice?

Overview

A credit balance represents money that you owe your customer.  It is possible to refund this credit balance if your customer makes that request. As a best practice, Zuora recommends that you apply the credit balance to future invoices and this solution will explain how that can be done. Please note: Depending on your business practices, you may need to inform your customer of this policy.

Solution

As part of a payment run, Zuora provides the ability to automatically apply the credit balance before attempting a payment.  By selecting this option, the payment run will apply the credit balance to the invoice as the first step of the payment run. The payment run will apply the invoice balance if there is a sufficient credit balance.  In other words, if the credit balance is greater than the invoice balance, the whole invoice balance amount will be applied. If the credit balance is less than the invoice balance, the full amount of the credit balance will be applied and then the payment run will attempt a payment for the remaining invoice balance.

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