Table of contents
- 1. Overview
- 2. Solution
- 2.1.1. Credit Balance
- 2.1.2. Invoice Adjustments
- 3. Related
- 1. Overview
- 2. Solution
- 2.1.1. Credit Balance
- 2.1.2. Invoice Adjustments
- 3. Related
Overview
Negative invoices are very common with subscription-based businesses. In the product economy, negative invoices are not possible since it is not possible to have a negative product.
A negative invoice is created in the following ways:
- Performing an amendment that creates a negative proration such as a cancellation, downgrade or removal of a product
- Adding a product with a negative charge and generating an invoice
If your goal is to have no negative invoices, you must perform all cancellations, downgrades and product removals at the end of a billing cycle. For instructions, refer to the article How do I properly cancel or downgrade customers to avoid issuing a credit or refund?
Solution
You can use credit balances and invoice adjustments to handle negative invoices.
Credit Balance
If you want to treat this negative invoice as cash you can create a credit balance and apply it as a payment against future invoices or issue a credit balance refund.
Refer to the Credit Balance documentation for the steps to create, apply and refund credit balances.
Invoice Adjustments
If you want to zero out, you can create an invoice or invoice item adjustment that creates a positive transaction that is associated to the invoice.
See Creating Invoice Adjustments and Invoice Item Adjustments for steps to create an invoice adjustments and invoice item adjustments with the type Charge, which will change the invoice balance from negative to zero. Invoice Adjustments can be created with any Accounting Code of your choosing.
Related
- Manage Invoice Rules and Templates
- With Z-Billing, you can easily create and manage your invoice templates. Invoice templates are used to generate PDF invoices for your bills.
- Invoices
- An invoice is generated from a bill run. Invoices are your bills that you are sending to your customers. Once your invoices are created, you can email the invoices in PDF format to your customers in batches or individually. You can also choose to print out your invoice(s) and send them to your customers via postal mail. You can change the format of your invoice (for example, by adding a logo or adding more fields to your invoice) by customizing your invoice template.
- Viewing Invoices
- You can view invoices in list or expanded view, and you can view invoices from your customer account.
- Invoice Delivery Methods
- Invoice delivery preferences refer to the method your customer has opted to receive their invoices. The available methods are Print and Email. You can specify these methods under the billing and payment terms for the customer account.
- Reviewing and Posting Bill Runs
- When reviewing a bill run, you can click into the individual invoices to verify that the proper amount is being billed. Once you have completed your review of the bill run, you can post it.
- Invoice Subscriptions to Different Accounts
- Using the Invoice Subscription to Different Accounts feature, you can configure a subscription in an account to be rated and billed by a billing run initiated from a different account. This is typically used to create a hierarchical billing situation for larger companies with many departments, divisions, or subsidiaries.
- Working with Invoices
- You can use the Zuora API to create, edit, and query invoices.
- Adjusting Invoices
- Zuora provides two methods that you can use to adjust Invoices: Adjusting a line item (a charge or tax) on an invoice. Adjusting the total of an invoice. To adjust a single a line item, use an InvoiceItemAdjustment (available as of version 23.0 of the API). See Invoice Item Adjustment Use Cases for more information and examples. To adjust an invoice, use an InvoiceAdjustment (available as of version 24.0 of the API). See Invoice Adjustment Use Cases for more information and examples.
- Working with Credit Balance Adjustments
- Credit Balance tracks the customer's credit, which can be used to pay for future invoices or refunded at a later date. Use Account.CreditBalance to access the customer's credit balance information.
- Generating an Invoice (Intermediate)
- Invoice Adjustment Use Cases (Intermediate)
- Invoice Item Adjustment Use Cases (Intermediate)
- Querying an Invoice Body Field (Intermediate)
- Applying Payments to an Invoice (Intermediate)
- Handling Overpayments (Intermediate)
- Creating Credit Balance Adjustments (Intermediate)
- Canceling a Credit Balance Adjustment (Intermediate)
- Refunding Credit Balances (Intermediate)
- How do I apply a credit balance if I don't use Zuora's Payment Runs?
- How do I apply a credit balance to a future invoice?
- How do I bill in advance?
- How do I create an ad hoc charge or credit in Zuora?
- How do I customize the invoice template to show transactions, show payments, and create a statement?
- How do I edit a merge field on the invoice template?
- How do I handle free trials in Zuora?
- How do I handle overpayments (the customer pays more than they owe)?
- How do I handle write-offs?
- How do I know my invoice was sent to the recipient?
- How do I know what type of adjustment to use (invoice adjustment vs invoice item adjustment)?
- How do I remove the Zuora logo from my invoice template?
- How do I turn on invoice editing within a customer account?
- How do I update a Bill To or Sold To address on a posted invoice?
- How do I use an invoice number to find a payment?
- How do I use the Transaction Dates from Payment Operations?
- How do I verify the charges on my invoice are correct?
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