Skip to main content

Known Limitations in Invoice Settlement

Zuora

Known Limitations in Invoice Settlement

The Invoice Settlement feature is in Limited Availability. This feature includes Unapplied Payments, Credit and Debit Memo, and Invoice Item Settlement. If you want to have access to the feature, submit a request at Zuora Global Support

If you want to enable the Invoice Settlement feature, it is best practice to check its compatibility with other features and its known limitations first.

Compatibility with Other Features

The following table lists the Invoice Settlement compatibility with other features.

Feature Compatibility
Credit Balance If you have the Invoice Settlement feature enabled, the Credit Balance feature is deprecated.
Invoice Splitting If you have both Invoice Settlement feature and Invoice Splitting enabled, you cannot reverse split invoices.
No Rounding features If you want to enable the Invoice Settlement feature, you have to disable the No Rounding features that are in Limited Availability. Otherwise, it might cause payment or credit memos to fail to apply to invoices or debit memos due to the default decimal precision of currencies.
Prepaid Drawdown app If you want to enable the Invoice Settlement feature, you have to disable the Prepaid Drawdown app.
Enhanced Invoice Numbering app If you have the Enhanced Invoice Numbering app enabled, the Invoice Settlement feature is supported with limitations. See Enhanced Invoice Numbering for more information.
Zuora Netsuite Connector If you have Zuora Netsuite Connector enabled,  the Invoice Settlement feature is supported with limitations. See Integration Between Zuora and NetSuite for more information.
RBE optimization for large accounts permission

If you have the RBE optimization for large accounts permission enabled, credit memos are not generated and the billing run fails in scenarios where all the following conditions are met:

  • The Rollover of the Overage Smoothing charge model is used in a usage charge, and this charge is to be included in a credit memo.
  • The generation rule "Create credit memos for net negative invoice totals without grouping charges" is configured as the billing rule.
  • The total amount of all the charges that are included in the bill run is negative.

Invoice Settlement API Impacts

After the Invoice Settlement feature is enabled, certain Actions and API operations are deprecated. Instead, you can use the alternative REST API operations specific to the Invoice Settlement feature to perform the corresponding transactions.

Deprecated APIs Alternative Invoice Settlement APIs
  • Actions / SOAP API calls 
    • Amend
    • Create
    • Delete
    • Execute
    • Generate
    • Query
    • QueryMore
    • Subscribe
    • Update
    The Actions deprecation is only specific to the objects related to the Invoice Settlement, for example, credit memos, debit memos, payments, and refunds. You can still perform operations on the objects unrelated Invoice Settlement.
  • SOAP and CRUD operations specific to payments, refunds, credit balance adjustments, invoice adjustments, and invoice item adjustments

REST API Limitations

If you have the Invoice Settlement feature enabled, REST API operations have the following known limitations.

Operation/Field Limitations
Bulk operations You cannot use the REST API to create or update payments, refunds, credit memos, or debit memos in bulk.
Applying credit memos in subscription operations

You can use the following operations to manage subscriptions, but applying outstanding credit memos is not supported during the process. Instead, you can use the Apply credit memo operation to apply credit memos.

Applying credit memos in order operations You can use the following operations to manage subscriptions, but applying outstanding credit memos is not supported during the process. Instead, you can use the Apply credit memo operation to apply credit memos.
Gateway options

You can use the following operations to create payment methods or payments, but gateway options are not passed during the process.

Gateway specific fields of SoftDescriptor and SoftDescriptorPhone

You can use the following operations to The following operations do not support passing the gateway specific fields of SoftDescriptor and SoftDescriptorPhone. See Payment for more information about these fields.

SecondPaymentReferenceId field You can use the Create payment operation to create external payments, but the SecondPaymentReferenceId field cannot be passed during the process. This field indicates the transaction ID returned by the payment gateway if an additional transaction for the payment exists.
SourceType

You can use the following operations to retrieve refund information, but the SourceType field is not returned in the response body, which indicates whether the refund is to refund a payment or a credit memo.

Source and SourceName fields

You can use the Get payments and Get payment operations to retrieve payment information, but the Source and SourceName fields are not returned in the response body.

  • Source indicates how the payment was created, whether through the API, manually, import, or payment run.
  • SourceName indicates the payment run number or file name. 

Limitations in Credit and Debit Memos

If you have the Invoice Settlement feature enabled, Credit and Debit Memos has the following specific known limitations.

Scenario Limitations
Applying credit memos

When applying a credit memo, you can only apply the credit memo to a maximum of 1,000 invoices and debit memos in total.

If the Proration application rule is used, when applying credit memos, ensure that the following quantity must be less than or equal to 10,000. Otherwise, the First In First Out rule will be used instead of the Proration rule.

(number of invoice items + number of debit memo items) * number of credit memo items

Unapplying credit memos

When unapplying a credit memo, you can only unapply the credit memo from a maximum of 1,000 invoices and debit memos in total.

If the Proration application rule is used, when unapplying credit memos, ensure that the following quantity must be less than or equal to 10,000. Otherwise, the First In First Out rule will be used instead of the Proration rule.

(number of invoice items + number of debit memo items) * number of credit memo items

Rules for generating invoices and credit memos If the rule for generating invoices and credit memos is set to Create credit memos for net negative invoice totals without grouping charges, negative invoices or negative credit memos might be generated.
Inclusive tax model If the tax model is inclusive, the tax amount of the created credit memo item or debit memo item might have a difference from the amount of the original invoice item. When credit memos or debit memos are created from an invoice, the exclusive tax model is used by default. As a result, the tax amount might have a difference of one or two cents due to rounding.
Multiple memo items created from the same invoice item If multiple credit memo items are created from the same invoice item, the total tax amount for the same charge might have a difference of one cent or two cents from the tax amount of the invoice item.
Invoice with discount items If credit memo items or debit memo items are created from an invoice with discount items, the quantity of the memo items that are created from discount invoice items is not passed to the Avalara tax engine or tax connector apps. This situation might result in the wrong tax calculation for the Tennessee Tiered Tax scenario.

Limitations in Unapplied Payments

If you have the Invoice Settlement feature enabled, Unapplied Payments has the following specific known limitations..

  • When creating a payment or applying a payment, you can only apply the payment to a maximum of 1,000 invoices and debit memos in total.
    If the Proration application rule is used, when applying a payment, ensure that the following quantity must be less than or equal to 10,000. Otherwise, the First In First Out rule will be used instead of the Proration rule.
    (number of invoice items + number of debit memo items) * number of payment items

Limitations in Invoice Write-Off and Reversal

If you have the Invoice Settlement feature enabled, invoice write-off and invoice reversal have the following specific known limitations.

Scenario Limitations
Invoices with discount items If discount invoice items exist, you cannot create the exact same items and amount for credit memo items during the invoice reversal and write-off.
Invoice taxation items with zero balance If invoice taxation items with zero balance exist in an invoice, no corresponding credit memo taxation items are created during the invoice reversal and write-off. As a result, the related invoice taxation items with zero balance do not map to credit memo taxation items in third-party tax engines.
Tax connector apps When tax connector apps are used, you cannot update the custom fields on invoices, credit memos, invoice items, and credit memo items from tax connector apps during the invoice reversal and write-off. 
Number of items in invoices You can only write off or reverse an invoice if it contains at most 750 items in total, including invoice items, discount items, and taxation items. If an invoice contains more than 750 items, see Invoice write-off and Invoice reversal for the workaround.