Sometimes you need to issue a charge or credit to an existing invoice or a future invoice. Charges are typically items such as late fees and credits are typically items such as customer service credits. In Zuora, charges and credits for existing invoices are handled through invoice item adjustments and for future invoices via amendments. Instances such as discounts or free months of service should be managed via the discount charge model or making changes directly to the subscription.
In order to create an ad hoc charge or a credit for an existing invoice, you would create an invoice item adjustment (IIA).
The ability to make a negative invoice more negative or a positive invoice more positive is an advanced Invoice Item Adjustment feature that is available through the Zuora API. This feature is not available for Z-Suite or QuickBooks integrations. Contact Zuora Global Support for more information about enabling this feature on your Zuora tenant.
In order to create an ad hoc charge or credit for a future invoice you would create an amendment. An amendment allows you to associate the charge to the subscription for better reporting and an amendment has a complete audit trail, which is very helpful in the event your customer care teams need to refer back for more information on the charge or the credit.
You can create an ad hoc charge or credit that is one-time or recurring and is positive or negative. As a best practice, you can create a product for the customer service credit, late fee, or any other typical ad hoc charge.
There are different implications if you issue a charge or credit to an existing invoice versus a future one:
When issuing a charge, it is important to consider the customer expectations and the implications to the payment processing: