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.
You can issue full or partial refunds for posted credit memos to your customers only if you have appropriate user permission. See Refunds and Billing Roles for more information.
You can configure an application rule to determine how to refund the credit memos to your customers.
To refund a credit memo through the Zuora REST API, see POST Refund Credit Memo.
To refund a credit memo through the Zuora UI, complete the following steps:
- Navigate to Billing > Credit and Debit Memos in the navigation section.
- On the Credit and Debit Memos page, click the credit memo that you want to refund.
- Click More > refund this credit memo from the payment detail page.
- On the refund page, specify the following basic information:
- From the Payment Method to Refund list, select the payment method that is used to refund.
- In the Refund Date field, specify the date when to refund money to your customer.
- In the Amount to Refund field, specify the amount of the refund.
- (Optional) In the Comments field, specify the note of the refund.
- From the Reason Code list, select the reason of the refund. The Reason Code field is only editable if you have the user permission.
- Specify the following financial information:
- From the Transferred to Accounting list, select the status of the mapping from Zuora to a third party, such as NetSuite or Salesforce.
- From the Bank Account list, select the accounting code that maps to a bank account in your accounting system.
- From the Unapplied Payment list, select the accounting code for unapplied payment.
- From the On-Account list, select the on-account. On-account specifies the credit that is in your customer account and is not applied to pay invoices or debit memos.
- Click refund.
When you refund a credit memo, the refund date may not equal to the RefundApplication.EffectiveDate and the RefundApplicationItem.EffectiveDate.
The RefundApplication.EffectiveDate and RefundApplicationItem.EffectiveDate will equal to or later than the effective date of the last apply or unapply action on the credit memo.
For example, you refund a credit memo on 3/29/2021, the refund date is 3/29/2021. But if an apply or unapply action is performed on the credit memo and its effective date is 3/30/2021, then the RefundApplication.EffectiveDate and the RefundApplicationItem.EffectiveDate will be 3/30/2021.