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Unapply credit memos from invoices and debit memos

Zuora

Unapply credit memos from 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.

You can unapply the applied portion of credit memos from invoices and debit memos only if you have appropriate user permission. See Billing Roles for more information about Billing user permissions. The fully applied amount from invoices and debit memos is transferred into the unapplied amount of the credit memo.

Overview

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

When unapplying a credit memo, the total number of the credit memo's item parts must be less than or equal to 1,000. Otherwise, the operation would fail and an error message would pop up. When you see this error, you can try using the Unapply a credit memo API as an alternative. Similarly, make sure that all the requirements listed in the API reference are met.

If the Proration application rule is used, when unapplying credit memos, the following quantity must be less than or equal to 15,000:

(number of invoice items + number of debit memo items) * number of credit memo items

Otherwise, the First In First Out rule will be used instead of the Proration rule.

Procedure

To unapply a credit memo through the Zuora REST API, see PUT Unapply Credit Memo.

To unapply a credit memo through the Zuora UI, complete the following steps:

  1. Navigate to Billing > Credit and Debit Memos in the navigation section.
  2. On the Credit and Debit Memos page, click the target memo number in the Credit Memo tab.
  3. Click more > unapply this credit memo on the credit memo detail page. 
  4. In the Effective Date field, specify the date when the unapply operation takes effect. The default value of the effective date is today's date. 
  5. Select the Unapply from all check box if you want to unapply all the amount of this memo from the invoices and debit memos.
  6. In the Apply Credit Memo panel, select the invoices and debit memos that you want to unapply.
  7. For each invoice and debit memo, you can unapply the credit memo in 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 unapply. 
    3. Specify the amount you want to unapply for each item in the Amount to Unapply column.
  8. Click unapply.