An Invoice Balance represents how much is owed on an invoice. An invoice balance can be positive or negative.
A negative invoice balance is different from a credit balance. For more information about the negative invoice balance, see How do I handle a negative invoice?
Invoice Balance =
(Invoice, Adjustments[Charge], Refunds) minus (Payments, Adjustments[Credit])
If the Zuora Billing Rules, Include invoices with negative totals in the Account Balance (included associated Debit Memos)?, is set to No, only the invoices with positive totals are included in the invoice balance.
An Account Balance is the total amount due (includes credit balance). The account balance can be positive or negative.
Account Balance = Total Invoice Balance – Total Credit Balance
A Credit Balance allows you to hold on to a “credit” that can be applied to future invoices or refunded to the customer. Unlike invoice and account balances, the credit balance cannot be negative.
For example: A customer pays for a one-year subscription, but cancels after two months. Instead of sending a prorated refund check, you can retain the amount and allow the customer to use it to pay for another invoice.
Once the credit balance feature is enabled, each billing account in Zuora Billing will have an account balance and a credit balance displayed under the customer account Key Metrics.
See Credit Balances for more information.