Integration with Invoice Settlement

Timing of Enabling Invoice Settlement

If the Finance feature is already enabled and you want to enable Invoice Settlement, a best practice is to enable Invoice Settlement right after an accounting period is closed and before a journal run has occurred in the open accounting period.

If the journal entries of Invoice Payment transactions exist in your open accounting period, do not enable the Invoice Settlement feature at this time. Otherwise, after Invoice Settlement is enabled, these Invoice Payment transactions will be migrated to Payment Application transactions. This migration might cause various issues with trial balance and journal run. For example, after a trial balance, you might find differences between the Accounts Receivable report details and the journal entry details. The Transaction ID in the Accounts Receivable report details is the Payment Application ID. However, the Transaction ID in the journal entry details is still the Invoice Payment ID. To resolve the differences, cancel the previous journal run and create another one. In the new journal entry details, the Payment Application ID is used as the Transaction ID.

Finance Integration

After you enable the Invoice Settlement feature, Zuora Finance provides the following capabilities in both the Zuora UI and REST API:

• Accounting Codes
  • Create new accounting codes for On-Account Receivable
  • Assign accounting codes for credit and debit memos
  • Update accounting codes for credit and debit memos
• Accounting Periods
  • After running trial balance for an accounting period, in Zuora UI:
    • Include draft credit and debit memos as transactions that need to be reconciled before closing an accounting period
    • Integrate credit and debit memos information in Accounting Period Summary
    • Integrate unapplied payment aging and unapplied credit memo aging in Accounting Period Balances
    • Integrate credit memos, debit memos, and unapplied payment information in Account Receivable in Accounting Period Balances
    • Integrate credit memos, debit memos, and unapplied payment information in Foreign Currency Exchange Gains / Losses in Accounting Period Balances if you have the Currency Conversion feature enabled
    • Generate Debit Memo Aging report
• Transaction Types and Journal Entries

  • Generate journal entries for Credit Memo Item, Debit Memo Item, Credit Memo Application Item, Payment Application, and Refund Application

  • Generate journal entries for Payment Application Item and Refund Application Item if you have the Invoice Item Settlement feature enabled

• Revenue Recognition Rules
  • Create revenue recognition rule for credit memos and debit memos
  • Override revenue recognition rule for draft memos when updating memos
  • Override Transferred to Accounting Field (TTA) for posted credit and debit memos

• Revenue Schedules

  • Automatically generate and distribute revenue schedules for posted credit memo and debit memo

  • Create and update revenue schedules for credit memo items and debit memo items through Mass Updater

• Data Sources

  • Export the following new data source objects: 

    • Revenue Schedule Item Credit Memo Item

    • Revenue Schedule Item Debit Memo Item

    • Revenue Event Item Credit Memo Item

    • Revenue Event Item Debit Memo Item

  • Export finance information to the data source objects that are related to the Invoice Settlement and Invoice Item Settlement features. See Data Source Reference for more information.