Credit memo reversal in Billing - Revenue integration

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If you have the Reverse Credit Memo user permission in Zuora Billing, you can reverse posted credit memos. When credit memo reversal happens in Zuora Billing, a debit memo transaction is generated by Zuora Billing. After this debit memo transaction is synced to Zuora Revenue, it will be treated as a new type of debit memo source called AdhocFromCreditMemo.

Limitations

Zuora Revenue currently supports the common use cases of credit memo reversal in Zuora Billing with the following limitations:

After the debit memo is generated for credit memo reversal, any deletion, unposting, or cancellation of the debit memo cannot be consumed in Zuora Revenue. It means the reversal entry will not be created in Zuora Revenue.
The debit memo transaction does not have any reference back to the reversed credit memo. Instead, it references back to the original sales order (SO) line for the charge. The SO reference for both regular and discount charges consists of the original ID of the rate plan charge (RatePlanCharge.OriginalId) followed by the rate plan charge segment (RatePlanCharge.segment).
The new Zuora Billing standard field CreditMemo.Reversed cannot be consumed in Zuora Revenue.

Use cases

Two use cases are presented to help understand how credit memo reversal in Zuora Billing is handled in Zuora Revenue.

Case 1

In this use case, the following actions occur in sequence in Zuora Billing.

On the first day, a termed subscription is created with a recurring charge (C-00196777) of $100 from 09/01/2021 till 09/31/2021. A sales order (SO) transaction will be consumed in Zuora Revenue.
On the same day, a bill run is created as of 10/01/2021. This will get an invoice transaction being consumed in Zuora Revenue.
On the second day, the subscription is canceled with the effective date of 09/16/2021. The original SO line is updated with the new term.
On the same day, a bill run is created to auto-generate a credit memo for the duration from 09/16/2021 till 09/30/2021. A CM-C transaction will be consumed in Zuora Revenue.
On the third day, a credit memo reversal occurs to the generated credit memo. The system auto-generates a debit memo for the duration from 09/16/2021 till 09/30/2021. The debit memo transaction will be consumed as an invoice line in Zuora Revenue with reference to the rate plan charge ID and rate plan charge segment of the original SO line.

After billing data is synced, these actions will get the following transaction lines being consumed in Zuora Revenue.

Action	Subscription #	Subscription Version	Charge #	Charge Original Id	Charge Segment	Transaction Type	SO Line Id	Start Date	End Date	SO Amount	Invoice #	INV Line Id	Invoice Amount
Create subscription	A-S00099756	1	C-00196777	abc123	1	SO	abc123.1	9/1/21	9/30/21	100
Bill run	A-S00099756	1	C-00196777	abc123	1	INV	abc123.1	9/1/21	9/30/21		INV00016050	112233	100
Cancel subscription	A-S00099756	2	C-00196777	abc123	1	SO	abc123.1	9/1/21	9/15/21	50
Bill run	A-S00099756	2	C-00196777	abc123	1	CM-C	abc123.1	9/16/21	9/30/21		CM00000602	223123	-50
Credit memo reversal	A-S00099756	2	C-00196777	abc123	1	INV	abc123.1	9/16/21	9/30/21		DM00000019	345345	50

Case 2

In this use case, the following actions occur in sequence in Zuora Billing. Different from the first use case, a discount charge is created together with the regular charge. This results in two SO lines being consumed in Zuora Revenue. The subsequent bill runs, subscription cancelation, and credit memo reversal will have an impact on both SO lines.

On the first day, a termed subscription is created with a recurring charge (C-00196780) of $100 and a discount percentage charge (C-00196781) of 10% from 09/01/2021 till 09/31/2021. These two charges will be consumed as two SO lines in Zuora Revenue.
On the same day, a bill run is created as of 10/01/2021. Two invoice lines are consumed in Zuora Revenue for the original two SO lines.
On the second day, the subscription is canceled with the effective date of 09/16/2021. The original two SO lines are updated for the new term in Zuora Revenue.
On the same day, a bill run is created to auto-generate a credit memo for the duration from 09/16/2021 till 09/30/2021. Two CM-C lines are consumed in Zuora Revenue with reference to the original SO lines.
On the third day, a credit memo reversal occurs to the generated credit memo. The system auto-generates a debit memo for the duration from 09/16/2021 till 09/30/2021. Two debit memo lines are consumed in Zuora Revenue with reference to the rate plan charge ID and rate plan charge segment of the original SO line.

After billing data is synced, these actions will get the following transaction lines being consumed in Zuora Revenue.

Action	Subscription #	Subscription Version	Charge #	Charge Original Id	Charge Segment	Transaction Type	SO Line Id	Start Date	End Date	SO Amount	Invoice #	INV Line Id	Invoice Amount
Create subscription	A-S00099758	1	C-00196780	abc1234	1	SO	abc1234.1	9/1/21	9/30/21	100
Create subscription	A-S00099758	1	C-00196781	abc1235	1	SO	abc1234.1.abc1235.1	9/1/21	9/30/21	-10
Bill run	A-S00099758	1	C-00196780	abc1234	1	INV	abc1234.1	9/1/21	9/30/21		INV00016051	3213	100
Bill run	A-S00099758	1	C-00196781	abc1235	1	INV	abc1234.1.abc1235.1	9/1/21	9/30/21		INV00016051	3214	-10
Cancel subscription	A-S00099758	2	C-00196780	abc1234	1	SO	abc1234.1	9/1/21	9/15/21	50
Cancel subscription	A-S00099758	2	C-00196781	abc1235	1	SO	abc1234.1.abc1235.1	9/1/21	9/15/21	-5
Bill run	A-S00099758	2	C-00196780	abc1234	1	CM-C	abc1234.1	9/16/21	9/30/21		CM00000603	223124	-50
Bill run	A-S00099758	2	C-00196781	abc1235	1	CM-C	abc1234.1.abc1235.1	9/16/21	9/30/21		CM00000603	223125	5
Credit memo reversal	A-S00099758	2	C-00196780	abc1234	1	INV	abc1234.1	9/16/21	9/30/21		DM00000020	32341	50
Credit memo reversal	A-S00099758	2	C-00196781	abc1235	1	INV	abc1235.1	9/16/21	9/30/21		DM00000020	32342	-5