Use cases of invoice and memo association

Known limitations

The association between invoices and credit memos has the following limitations:

• The values of the creditFromItemId and creditFromItemSourceType fields are null for the credit memos that were created before Zuora Billing Release 305, July 2021.
• In the scenario of cancelling a subscription and then splitting the corresponding invoice, the value of the creditFromItemId field refers to the invoice item of the original invoice which has been split. The original invoice has been cancelled due to invoice splitting.
• In the scenario of splitting an invoice and then cancelling the corresponding subscription, the value of the creditFromItemId field refers to an invoice item in a split invoice. The split invoice is generally the one that has the greater sequence number.

Case I: Canceling a subscription

Your end customer subscribes to an annual service from January 1, 2021 to December 31, 2021, and an invoice named INV-001 is generated. Later, your customer cancels the subscription on July 1, 2021, so you have to provide corresponding credit for your customer.

The key information of invoice INV-001 is as follows:

If your customer cancels the subscription on July 1, 2021, so you use the billing engine to generate a credit memo named CM-001 to provide corresponding credit for your customer. The source type of this credit memo is API or BillRun and its source ID is null. The key information of credit memo CM-001 is as follows.

Due to a service dispute, you want to create a standalone credit memo named CM-002 from invoice INV-001. The source type of this credit memo is Invoice, and its source ID is the ID of invoice INV-001.  The key information of credit memo CM-003 is as follows.

Later, you want to create a standalone credit memo from the corresponding product rate plan charge for providing ad-hoc credit for your customer. The source type of this credit memo isAdhocFromPrpc, and its source ID is the ID of the product rate plan charge. The key information of credit memo CM-003 is as follows.

Case II: Invoice owner transfer

Invoice owner transfers do not affect the association between an invoice and the corresponding credit memo created from the invoice.

For example, your end customer subscribes to an annual service from January 1, 2021 to December 31, 2021, and an invoice named INV-001 is generated for the account named A-001. After the invoice is generated, your customer wants to change the invoice owner, so you transfer the invoice owner to the account named A-002 for future charges. 

The key information of this invoice is as follows:

Later, your customer cancels the subscription on July 1, 2021, so you create a credit memo to provide corresponding credit for the account named A-002. The key information of the credit memo is as follows.