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Apply unapplied payments to invoices and debit memos

Zuora

Apply unapplied payments to invoices and debit memos

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The Invoice Settlement feature is generally available as of Zuora Billing Release 296 (March 2021). This feature includes Unapplied Payments, Credit and Debit Memos, and Invoice Item Settlement. If you want to have access to the feature, see Invoice Settlement Enablement and Checklist Guide for more information. After Invoice Settlement is enabled, the Invoice Item Adjustment feature will be deprecated for your tenant.

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:

  1. Navigate to Payments > Payments. 
  2. Click the payment you want to apply.
  3. On the payment detail page, click more > Apply this payment.
  4. In the Effective Date field, specify the date 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 payment_details1.png 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 payment_details2.png 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 to this payment.