Overview of Invoice Settlement Harmonization

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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.

If you are 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 you transition 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

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

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 Multi-Org.

When Multi-Org is enabled with 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. Once Multi-Org is enabled after enabling the Invoice Settlement Harmonization feature, the Invoice Adjustment function will no longer be available.

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 and Credit Balance Adjustment will be available in 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

Invoice Settlement Harmonization can be enabled for customers who have K2 permissions but do not have Order to Revenue integration. This behavior applies to all the new billing transaction types under Invoice Settlement, including Credit and Debit Memos.

You cannot sync your data to revenue if Invoice Settlement Harmonization is enabled. To support the synchronization to revenue, you can migrate to order to revenue integration environment or migrate from Invoice Settlement Harmonization to Invoice Settlement.

Current Limitations

Using Subscribe API, the application of credit memos and unapplied payments is not supported during the Invoice Settlement Harmonization phase.
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
When Invoice Settlement Harmonization is enabled along with the Configurable Payment Retry (CPR) and Advanced Payment Manager (APM), do not enable the following permissions in your tenant:
- Subscription Level Multi Currencies
- Prepaid Cash
- Multi-Org
- Payment Schedule