Overview of Invoice Settlement Harmonization
What is Invoice Settlement Harmonization?
If you are a Zuora Invoice Adjustment customer, Zuora now provides you with an additional option of Invoice Settlement Harmonization to adopt Invoice Settlement gradually if you do not want to switch directly to Invoice Settlement. The benefit is that you can access both the Invoice Settlement feature and existing Invoice Adjustment functionalities during the harmonization period until you are fully ready to adopt Invoice Settlement.
Enabling Invoice Settlement Harmonization does not impact your existing Invoice Adjustment settings.
For customers currently using Legacy AR functionalities, Zuora will conduct a silent payment migration in line with the Invoice Settlement Payments data model. See Invoice Settlement Harmonization migration, for more information.
Note that you cannot hide the Invoice Settlement feature after enabling the Invoice Settlement Harmonization.
How to tell whether Invoice Settlement Harmonization is enabled?
The Invoice Settlement Harmonization UI outlines the different phases when a customer transitions from Invoice Adjustments/Invoice Item Adjustments to Invoice settlement using the Invoice settlement harmonization approach.
How does it work?
The following table illustrates the behavior mappings in the co-existence model of Invoice Adjustments and Invoice Settlement:
| Environment | Legacy Invoice Adjustment/Invoice Item Adjustment (IA/IIA) | Invoice Settlement Harmonization(ISH) | Invoice Settlement(IS) |
|---|---|---|---|
| Supported Objects | Invoice Adjustment, Invoice Item Adjustment, Invoice Payment, Credit Balance Adjustment, Refund Invoice Payment |
Invoice Adjustment, Invoice Item Adjustment, Invoice Payment, Credit Balance Adjustment, Refund Invoice Payment + Credit Memo, Credit Memo Application, Credit Memo Item, Credit Memo Part, Debit Memo, Debit Memo Application, Debit Memo Item, Debit Memo Part, Payment Application, Payment Part, Refund Application, Refund Part |
Credit Memo, Credit Memo Application, Credit Memo Item, Credit Memo Part, Debit Memo, Debit Memo Application, Debit Memo Item, Debit Memo Part + Payment Application, Payment Part, Refund Application, Refund Part |
After completing all the configurations and technical alignment in the coexistence phase, you can choose to enable full IS mode. To enable the IS feature, submit a request at Zuora Global Support. You can decide to keep the current process of adoption and can migrate straight from IIA to IS without a coexistence phase.
Expected system behavior
The following sections explain the system behavior during the invoice settlement harmonization phase.
NetSuite Connector
If you have Netsuite connector enabled, the Credit Memo/Debit Memo and Invoice Settlement Payment objects do not sync with NetSuite by default.
To sync the Invoice Settlement transaction to NetSuite, you should deprecate the IIA and negative invoice flow in Zuora Billing and then migrate your NetSuite connector to the IS version. For more information, see Enable Invoice Settlement to support Netsuite connector.
Data Source Exports, Reporting, Data Query
You can view Legacy IIA/IA/CB and Invoice Settlement Objects like Payment Part/Payment Application.
Multi-Currency
With Invoice Settlement Harmonization, you can choose to enable multi-currency for scenarios where the subscription should be created in a currency different from the account currency.
When a multi-currency invoice is processed in the payment run, the generated payments will align with the Invoice Settlement Payments data model. There will be no Invoice Payment object; instead, the Payment Part and Payment Application records are generated.
Note that before enabling Multi-Currency in your tenant, enable 'Enable Credit Memo Generation instead of Negative Invoices' Invoice Settlement Harmonization Settings under the Billing settings.
Enabling this option prevents the system from generating a negative invoice with a currency different from the billing account, as you cannot transfer an invoice of this kind to the credit balance or adjust by Invoice Item Adjustment or Invoice Adjustment.
Multi-Org
With Invoice Settlement Harmonization, you can choose to enable the Multi-Org.
When Multi-Org is enabled with the Invoice Settlement Harmonization, the Payment Run generated payments will align with the Invoice Settlement Payments data model. There will be no Invoice Payment object; instead, the Payment Part and Payment Application records are generated.
- The Org information for Payment/Refund is only supported in the AdvancedPayment menu from the UI.
- The following transaction types do not support Multi-Org Labeling, and all the users in that tenant can operate the transaction.
- InvoicePayment
- RefundInvoicePayment
- InvoiceItemAdjustment
- CreditBalanceAdjustment
- The Invoice Adjustments feature is not compatible with Multi-Org. You have to disable the Invoice Adjustment before enabling Multi-Org.
If you enable the Z-Finance/Z-Revenue feature along with Invoice Settlement Harmonization and Multi-Org, the following changes are expected.
- Invoice Item Adjustment will be added to the unlabeled Accounting Period.
- Credit Balance Adjustment will be added to the unlabeled Accounting Period.
- The revenue schedule for invoice item adjustment will be allocated during the unlabeled accounting period.
Payment Schedules
With Invoice Settlement Harmonization, you can choose to enable Payment Schedules for scenarios that allow you to collect a series of payments following customized timelines and rules.
The Payments generated through the Payment Schedule will align with the Invoice Settlement Payments data model. There will be no Invoice Payment object; instead, the Payment Part and Payment Application records are generated.
Prepaid Cash
With Invoice Settlement Harmonization, you can choose to enable prepaid cash for scenarios where they want to collect payment from the subscribers and then add the prepaid payment to their customer accounts. Subsequent subscriptions can be configured to consume this “reserved” payment amount during payment run.
Payments generated through payment run will align with the Invoice Settlement Payments data model when Prepaid Cash permission is enabled. There will be no Invoice Payment object; instead, the Payment Part and Payment Application records are generated.
Invoice Item Settlement
If Invoice Settlement Harmonization is enabled, you can choose to apply an Invoice Settlement payment to the invoice line item level or unapply the Invoice Settlement payment from the invoice line item level.
Finance
If Invoice Settlement Harmonization is enabled, you can see the legacy Invoice Adjustment/Invoice Item, Invoice Settlement, and Invoice Item Settlement objects (Credit memos, debit memos, unapplied payments) in Trial Balance Run, Journal Run, Mass Updater, and Accounting Codes.
During Invoice Settlement Harmonization enablement, Zuora’s enhanced and better performance Journal Run V2 and Trial Balance Run V2 are automatically enabled.
Zuora 360
Zuora 360 does not support syncing the Credit Memo/Credit Memo Item/Credit Memo Part/Debit Memo/Debit Memo Item.
Zuora Revenue
Customers who use the K2 and want to enable the Invoice Settlement Harmonization must first migrate from K2 to UNO before enabling Invoice Settlement Harmonization as K2 will sunset, and K2 does not support further enhancements.
Current Limitations
We intend to extend support for the following features during Invoice Settlement Harmonization in the future:
- Payment Run to collect Debit Memo
- Mass Payment Updater
- Configurable Payment Retry
- Advanced Payment Manager
- Lockbox
- JGAAP, Reporting AR Aging