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Refund a payment with auto-unapplying


Refund a payment with auto-unapplying


Using the Unapply and Refund feature, you can directly refund full or partial payment to your customers, without the need to unapply the payment first.You can unapply the payments only if you have appropriate user permission to unapply a payment and issue a refund. See Payment Roles for more information.

Through the Payments settings configuration, you can configure a default application rule to determine how to unapply applied payments from invoices and debit memos. Zuora uses the user configured application rule to automatically unapply the payment if you have not specified item-level application amounts explicitly.

Note: This operation is only available if you have Invoice Settlement enabled. 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 enable Invoice Settlement, see Invoice Settlement Enablement and Checklist Guide for more information.

After a payment is fully refunded, it doesn’t contain any payment part.


To refund a full or partial payment with auto-unapply from the Zuora UI, complete the following steps:

  1. Navigate to Payments > Payments
  2. In the payment list view, locate the target payment and click Unapply and Refund at the top of the payment page. The Refund payment page opens.
  3. On the Refund a Payment page, specify the following information in the Basic Information section:
    1. In the Refund Method field, specify the refund method.
    2. In the Refund Type field, specify the refund type.
    3. In the Refund Date field, specify the date when to refund money to your customer.
    4. Select the invoices and debit memos that you want to unapply the payment for, and specify the amount in the Refund Amount field.
    5. In the Refund Amount field, specify the refund amount.
    6. From the Reason Code list, select a reason code for the refund. 

      Reason codes are a way that you can include additional information or business process context on payment operations transactions. This list contains all of the payment refund reason codes that are active in your Zuora tenant. See Reason Codes for Payment Operations for detailed information about reason codes.

    7. (Optional)Select Write Off Refund Amount if you also wish to write off the refund amount from the invoice.
    8. From the Write Off Reason Code list, select a reason code for the write off.
    9. (Optional): In the Reference ID field, specify a reference ID.
    10. (Optional): In the Secondary Reference ID field, specify a reference ID.
    11. (Optional): In the Comments field, enter the comments for this payment.
  4. Specify the following information in the Finance Information section (optional):

    1. From the Transferred to Accounting list, select the status of the mapping from Zuora to a third party, such as NetSuite or Salesforce. 
    2. From the Bank Account list, select the accounting code that maps to a bank account in your accounting system. 
    3. From the Unapplied Payment list, select the accounting code for unapplied payment.
  5. Click Save.

The payment details page refreshes to display the specified refunded amount. As a precursor to issuing a refund, the refund amount specified will also be automatically unapplied from the billing document (Invoice/Debit memo).

To refund a full or partial unapplied payment through the Zuora REST API, see Refund a payment with auto-unapplying.