Credit Memo Transaction Sync (NetSuite to Zuora)

Overview

This integration syncs NetSuite credit memos to Zuora invoice item adjustments. NetSuite Connector considers two types of credit memos: Standard and negative balance. The credit memo integration is actually implemented as two separate syncs, NetSuite credit memos to Zuora and NetSuite credit memos (negative balance) to Zuora.

See Credit Memo Transaction Sync (Invoice Settlement Enabled) for information about the integration that syncs Zuora credit memos to NetSuite credit memos when Invoice Settlement is enabled for your Zuora tenant.

About the Credit Memo Sync

• The standard use case is that within NetSuite a user creates a credit memo against a Zuora invoice with an available balance. The credit memo must reference an item. However, that item is not actually synced to Zuora because the sync creates a transaction-level invoice item adjustment.
• NetSuite Connector syncs only credit memos applied to an invoice that originated in Zuora.
• The credit memo must be fully applied.
• NetSuite Connector cannot create an invoice item adjustment because there is no guarantee that the item referenced on the NetSuite credit memo was referenced on the original Zuora invoice.
• The invoice item adjustment will be created in Zuora without an accounting code.
• If a credit memo is unapplied after it has been synced, you must reconcile manually.
• Review the Transaction Sync preferences. These preferences are important and control the behavior and data mapping of the sync, including the credit memo number.

You can disable both credit memo syncs from the NetSuite Connector Advanced Settings. However, you should disable this only under the guidance of Zuora Services.

Credit Memo Transaction Sync Rules: Standard

This integration syncs records according to the following rules:

1. NetSuite credit memo records are synced if they meet the following criteria:
   • The related customer account must be synced (the Zuora Customer ID cannot be empty).
   • The credit memo’s Integration Status is not Sync Complete.
   • The credit memo is fully applied (the Amount Remaining is 0).
   • The credit memo’s Zuora Type is empty (to exclude records synced from Zuora negative invoices and invoice item adjustment credits).
   • The credit memo is applied to exactly one Zuora invoice (where the transaction type is invoice and Zuora Type is INVOICE).
2. The following validations are performed during the sync to ensure data integrity:
   • The credit memo is applied to exactly one Zuora Invoice (where the transaction type is invoice and Zuora Type is INVOICE). The credit memo can be applied to other non-Zuora invoices or refunded, but can only reference a single invoice that came from Zuora.
3. The NetSuite credit memo’s Integration Status is updated to Creating Invoice Adjustment to indicate that the record is currently being synced and to assist with error recovery.
4. A Zuora invoice item adjustment of type credit is created.
5. Upon successful creation of the Zuora invoice item adjustment, the new Zuora ID is written to the NetSuite credit memo and the Integration Status is set to Sync Complete.

Credit Memo Transaction Sync Rules: Negative Balance

• One invoice item adjustment charge-type is created for the full amount of the credit memo and applied to the original Zuora negative invoice.
• For each Zuora invoice the credit memo was applied to, a separate invoice item adjustment credit-type is created and applied to that original Zuora invoice.

This integration syncs records according to the following rules:

1. NetSuite credit memo records are synced if they meet the following criteria:
   • The related customer account must be synced (the Zuora Customer ID cannot be empty).
   • The credit memo’s integration status is not Sync Complete.
   • The credit memo is fully applied (the Amount Remaining is 0).
   • The credit memo’s Zuora Type is NEGATIVE_INVOICE.
2. The following validations are performed during the sync to ensure data integrity:
   • The credit memo has been applied to at least one transaction (any type and not necessarily one that originated from Zuora).
3. The NetSuite credit memo’s Integration Status is updated to Creating Invoice Adjustment to indicate that the record is currently being synced and to assist with error recovery.
4. A Zuora invoice item adjustment of type charge is created for the total amount of the credit memo and applied to the original negative invoice in Zuora.
5. For each Zuora invoice the credit memo was applied to (which can be zero or more credit memos), a separate Zuora invoice item adjustment of type credit is created for the specific applied-to amount and applied to that invoice in Zuora.
6. Upon successful creation of all the Zuora invoice item adjustments, the new Zuora IDs are written to the NetSuite credit memo and the Integration Status is set to Sync Complete.