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Integration with Invoice Settlement


Integration with Invoice Settlement

The Invoice Settlement feature is generally available as of Zuora Billing Release 296 (March 2021). This feature includes Unapplied Payments, Credit and Debit Memo, and Invoice Item Settlement. After Invoice Settlement is enabled, the Invoice Item Adjustment feature will be deprecated for your tenant.

  • Credit and debit memos, like invoices, are legal documents vendors issue to their customers. They are used to correct charge mistakes on invoices and to manage the balance due on a particular invoice or account.
  • Unapplied payments are money received from customer accounts that have not been applied to invoices and debit memos.
  • The Invoice Item Settlement feature allows all the following settlement transactions against the item level:
    • Payments
    • Refunds
    • Credit Memos

Before enabling the Invoice Settlement feature, it is best practice to go through the Invoice Settlement migration checklist and guide.

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: