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Apply unapplied payments to invoices and debit memos

Zuora

Apply unapplied payments to invoices and debit memos

If your customers have unapplied payments on their accounts, you can do the following things:

  • Apply unapplied payments to one or more invoices and debit memos
  • Apply partial unapplied payment to invoices and debit memos, and leave the remainder of the payment as unapplied

Overview

You can apply the payments only if you have appropriate user permission. See Payments Roles for more information.

Through the billing settings configuration, you can configure a default application rule to determine how the system allocates payments applications to invoices and debit memos. Zuora uses the specified application rule to automatically allocate the payment if you have not specified item-level application amounts explicitly.

When you apply a payment, the total number of invoices and debit memos that the payment will apply to must be less than or equal to 1,000.

If the Proration application rule is used, when you apply a payment, the following quantity must be less than or equal to 15,000. 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

After the payments are applied to an invoice or debit memo, the related payment transactions are displayed on the invoice or debit memo detail page. You can find the payment details about the invoice and debit memo on this page.

Procedure

To apply an unapplied payment from the Zuora REST API, see Create a payment.

To apply an unapplied payment from the Zuora UI, complete the following steps:

Note that you can switch back to the old UI if you are unable to specify item level amount through UI when applying payments.

  1. Navigate to Payments > Payments
  2. Click the target payment with the unapplied amount to open the payment detail page.
  3. On the payment detail page, click the three vertical dots icon to show more applicable actions, and then click Apply this payment.
  4. In the Effective Date field, specify when the application takes effect.
  5. Select the invoices and debit memos that you want to apply the payment for, and specify the amount in the Amount to Apply column.
  6. If you have the Invoice Item Settlement feature enabled, you can apply the payment at item level:
    1. Click the plus icon (+) next to the document. The items of the invoice or debit memo are displayed. 
    2. Select the items you want to apply the payment for, and click the two-headed arrow icon next to the item. 
    3. Specify the amount you want to pay for each item in the Amount to Apply column. The Balance column shows the total amount you need to pay for that item. 
  7. Click Apply This Payment.
  8. In the confirmation dialog, click Yes.