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Mapping from memo or invoice item adjustment tax items to invoice tax items

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Mapping from memo or invoice item adjustment tax items to invoice tax items

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When you do the following tasks through the Zuora UI or REST API, Zuora needs to associate the taxation items on the memo/Invoice Item Adjustment (IIA) to the taxation items on the corresponding invoice, so the settlement records are traceable.

Distinct mapping and indistinct mapping 

By default, Zuora maps the taxation items based on a combination of specific taxation item fields, including theLocationCode,Jurisdiction, andTaxRate fields. This is distinct mapping.

However, when distinct mapping is insufficient to establish the association, you will be blocked from completing your task. In this case, you can enable indistinct mapping, which ensures that each memo/IIA taxation item is associated with an invoice taxation item, no matter whether theLocationCode,Jurisdiction, andTaxRatefields are matching.

Indistinct mapping use cases

Use case 1: Credit memo taxation items and invoice taxation items do not match

When you try to create a credit memo from a taxable invoice, taxes are calculated by the tax engine as listed in the following table. Zuora cannot decide on a one-to-one mapping for the first two taxation items of the credit memo and the first two taxation items of the invoice because all of them have the same location code, jurisdiction, and tax rate. In this case, the error message of “Tax items of memo do not match that of the associated invoice item {0}” is returned. To avoid this situation, you can enable indistinct mapping. After that, Zuora will map Taxation Item 1 and Taxation Item 2 of Credit Memo Item 1 to Taxation Item 1 and Taxation Item 2 of Invoice Item 1.

Invoice   Credit Memo
  Invoice Item 1   Credit Memo Item 1
    Taxation Item 1: 3887600-City-0.01-Transit Tax  

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     Taxation Item 1: 3887600-City-0.01- CA Transit Tax 
    Taxation Item 2: 3887600-City-0.01-Sales Tax      Taxation Item 2: 3887600-City-0.01- CA Sales Tax 
    Taxation Item 3: 3887600-State-0.06-Sales Tax  ✔     Taxation Item 3: 3887600-State-0.06-Sales Tax 

Use case 2: IIA taxation items inconsistent with invoice taxation items

You try to create an IIA from a taxable invoice, and the IIA taxes are calculated by Avalara as listed by the following table. Zuora cannot decide on Taxation Item 3 of IIA, because the IIA has three taxation items while the invoice only has two taxation items. In this case, the error message “The IIA tax calculated by Avalara is inconsistent with the tax calculated when posting invoices” is returned. To avoid this situation, you can enable indistinct mapping. After that, Zuora will map Taxation Item 3 of IIA to either Taxation Item 1 or Taxation Item 2 on Invoice Item 1. 

Invoice
  Invoice Item 1     Invoice Item Adjustment
    Taxation Item 1: 08-COLORADO-0.01-STATE TAX ✔     Taxation Item 1: 08-COLORADO-0.01-CO STATE TAX
    Taxation Item 2: 013-BOULDER-0.02-COUNTY TAX ✔     Taxation Item 2: 013-BOULDER-0.02-CO COUNTY TAX
  ✖     Taxation Item 3: 07850-BOULDER-0.03-CO CITY TAX

Use case 3: Invoices and credit memos using different tax engines

You initially use Avalara as the tax engine when generating invoices. When you switch the tax engine from Avalara to Vertex and try to create credit memos against the invoices, you will receive the error message, “The source invoice does not use this tax engine.” To avoid this situation, you can enable indistinct mapping. After that, Zuora will map taxation items from credit memo items to invoice items across the tax engines.

Enable indistinct mapping

To enable the indistinct mapping method, complete the following steps.

  1. Click your username at the upper right and navigate to Settings > Billing.
  2. On the Billing Settings page, click Define Billing Rules.
  3. On the Billing Rules page, click edit.
  4. From the Allow indistinct mapping from Memo / Invoice Item Adjustment tax item to invoice item tax list, select Yes.
  5. Click save.

 After indistinct mapping is enabled, Zuora still tries distinct mapping first. If it fails, indistinct mapping is applied.