The Invoice Settlement feature is generally available as of Zuora Billing Release 296 (March 2021). This feature includes Unapplied Payments, Credit and Debit Memo, and Invoice Item Settlement. If you want to have access to the feature, see Invoice Settlement Enablement and Checklist Guide for more information.
If your customers have unapplied payments on their accounts, you can:
- Apply unapplied payments to one or more invoices and debit memos
- Apply partial unapplied payment to invoices and debit memos, and leave the remainder of the payment as unapplied
You can apply the payments only if you have the user permission. See Payments Roles for more information.
Through the billing settings configuration, you can configure a default application rule to determine how the system allocates payments applications to invoices and debit memos. Zuora uses the specified application rule to automatically allocate the payment if you have not specified item-level application amounts explicitly.
When applying a payment, the total number of invoices and debit memos that the payment will apply to must be less than or equal to 1,000.
If the Proration application rule is used, when applying a payment, the following quantity must be less than or equal to 10,000:
(number of invoice items + number of debit memo items) * number of payment items
Otherwise, the First In First Out rule will be used instead of the Proration rule.
After the payments are applied to an invoice or debit memo, the related payment transactions are displayed on the invoice or debit memo detail page. You can find the payment details about the invoice and debit memo on this page.
To apply an unapplied payment from the Zuora REST API, see POST Apply Payment.
To apply an unapplied payment from the Zuora UI:
- Navigate to Payments > Payments in the left-hand navigation section.
- Click the payment you want to apply.
- Click More > Apply this payment from the detail payment page.
- In the Effective Date field, specify the date when the application takes effect.
- Select the invoices and debit memos that you want to apply the payment for, and specify the amount in the Amount to Apply column.
- If you have the Invoice Item Settlement feature enabled, you can apply the payment in item level:
- Click next to the document. The items of the invoice or debit memo are displayed.
- Select the items you want to apply the payment for, and click next to the item.
- Specify the amount you want to pay for each item in the Amount to Apply column. The Balance column shows the total amount you need to pay for that item.
- Click apply to this payment.