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Invoice Item Settlement

Zuora

Invoice Item Settlement

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.

The Invoice Item Settlement feature allows all the following settlement transactions at the item level:

  • Payments
  • Refunds
  • Credit memos

To apply the payments and refunds at the line-item level, you must have Invoice Item Settlement enabled. Invoice Item Settlement must be used together with other Invoice Settlement features (Unapplied Payments, and Credit and Debit memos). Invoice Item Settlement is available for Enterprise and Nine editions by default. If your Zuora edition is Growth, you must purchase this feature.

Invoice Item Settlement allows you to explicitly specify how payments and credit memos are applied at the item-level on invoices or debit memos. You can then track precisely how outstanding balances are settled for every billed item. Without this feature, payments and credits are applied only at the document header level and allocated automatically across items. In the case of partial payments or settlement by different types of transactions, the system uses this automated mechanism to settle item-level balances. 

Key Features

You can do the following operations at the line-item level from Zuora UI and REST API:

  • Apply credit memo items to invoice items and debit memo items (REST API only)
  • Unapply credit memo items from invoice items and debit memo items (REST API only)
  • Retrieve credit memo of a specific part item or all part items (REST API only)
  • Finance integration with invoice item settlement
  • To perform the following operations, you must have Invoice Item Settlement enabled. Invoice Item Settlement is in Limited Availability. If you wish to have access to the feature, submit a request at Zuora Global Support
    • Create payments on invoice items and debit memo items (REST API only) 
    • Apply unapplied payments to invoice items and debit memo items  (UI and REST API) 
    • Unapply payments from invoice items and debit memo items (UI and REST API) 
    • Retrieve payments of a specific part item or all part items (REST API only) 
    • Refund on credit memo items (REST API only) 
    • Retrieve refunds of a specific part item or all part items (REST API only)