Split invoices

Enable splitting invoices

To enable the Invoice Splitting feature, complete the following steps:

1. Click your username at the upper right and click Billing.

2. On the Billing Settings page, click Define Billing Rules. The Billing Rules page opens.

3. In the Billing Document section, edit and set the Allow invoice splitting rule to Yes.

4. Save your changes.

How splitting an invoice works

Suppose a customer has an invoice that totals $100,000. The customer wants to make four payments spread across multiple billing periods on the invoice. You can split that invoice into four separate invoices, each for a specific percentage of the original amount. These percentages can be any amount that you want to set as long as the collection of split invoices total 100% of the original invoice. In our example, you can set the first split invoice to 40% ($40,000), then each successive split invoice to 30% ($30,000), 20% ($20,000), and 10% ($10,000).

If you turn on the Flexible Billing feature, you can split a draft invoice that originates from a subscription with Flexible Billing Attributes. The split invoices retain the billing attributes from the subscription. You can also choose not to retain the payment term, in this case, you need to update the payment term while splitting the draft invoice. See Use case of working with Flexible Billing.

If you add a new invoice to the billing period, Zuora will automatically distribute it across the split invoices. 

You can do the following things:

• Split an existing draft invoice into two or more invoices. The splits are based on a percentage of the original invoice. 
• Re-split an existing draft invoice, changing the percentage of the invoice split. You can reset and reconfigure the split percentages, and number of splits. You can only do this with invoices that have not been posted.

Split an invoice

You can split an invoice into multiple invoices. Each split invoice is defined as a percentage of the invoice total. 

To split an invoice, complete the following steps: 

1. Navigate to Billing > Invoices.
2. Click the number of the draft invoice, which has not been posted, to open the invoice detail page.
3. Click the three vertical dots icon to display more applicable actions, then click Split Invoice. The Split Invoice dialog opens.
4. Select an invoice date, the percentage of the invoice total to apply this invoice, and a payment term.
   • Invoice date: This is the date you want to present to the customer on the invoice. Note that this is not the target date of the invoice, and is not necessarily the day the invoice is due.
   • Percentage: You can specify any value from 0.000000001 to 100 (inclusive). You can enter a whole number or a decimal number with up to nine decimal places. The total percentage of all split invoices must add up to 100. See the Invoice percentages section for more information.
   • Payment Term: Select the payment term to apply to this invoice. This specifies the number of days until payment is due on the invoice. You can apply different payment terms to every split invoice.
5. To create another split invoice, click Add New.
6. Click OK to save the invoices and generate new invoice IDs. 

When viewing the details of a split invoice, you can use the Split Invoices field in the Basic Information section to navigate to other invoices that were created as part of the same original splitting process. This field lists all of the split invoices created from the original invoice. Click any of the split invoice IDs to view the details of that split invoice. 

Split invoices also include a line at the bottom of the invoice detail that shows the percentage of this invoice and the total value of the invoice. For example, if the total invoice is $300, a split invoice that was set to be 40% of the total invoice will display 40% of $300.

Post split invoices and apply payments

When you post one part of a split invoice, or post the bill run for a split invoice, all of the split invoices will be posted. Similarly, if you unpost a split invoice, all of the split invoices will be unposted at the same time.

Once you apply a payment or an adjustment to any of the posted invoices, you cannot unpost any of the split invoices. 

Cancel and delete split invoices

When canceling split invoices, they are treated as a group. If you cancel any of the split invoices, then all of the invoices will be canceled. 

However, you can delete a single split invoice without deleting all related split invoices. You can only delete an invoice that has been canceled. 

Use case of working with Flexible Billing

This section introduces how billing attributes of subscriptions are retained and updated for split invoices.

1. Create an account A00000001 and specify the Bill to contact, Sold to contact, Payment term, Invoice template, and Sequence set billing attributes. 

2. Create a subscription A-S00000001 with billing attribute values as follows and an amount of $1200.

   	Bill to contact	Sold to contact	Payment term	Invoice template	Sequence set
   Account Default	billTo1	soldTo1	pm1	it1	ss1
   A-S00000001	billTo2	soldTo2	pm2	it2	ss2

3. Create a bill run for this account with invoice date 2023/10/01 as follows:

   Invoice	Amount	Invoice date	Payment term	Header level attribute	Item level attribute
   Invoice 1	$1200	2023/10/01	pm2	billTo2, it2 and ss2	soldTo2

   Note: Invoice 1 is automatically deleted once the invoice splitting occurs.

4. Split the draft invoice into two split invoices by specifying the following fields:

   Invoice	Percentage	Invoice date	Payment term
   Invoice 2	80%	2023/11/01	pm2
   Invoice 3	20%	2023/12/01	pm3

    

The split invoices are as follows: