Knowledge Center

Knowledge Center > How Do I . . . ? > How do I manage Invoice-to-Cash processes using Payment Operations?

How do I manage Invoice-to-Cash processes using Payment Operations?

Table of contents

Overview

Zuora's Payment Operations is our way to manage your invoice to cash process, or Accounts Receivables.

Every system has different transactions and business operations for the Invoice to Cash Business Process.

The Invoice to Cash business process starts with the invoice and includes all actions that the user or system performs to apply payments, give credits and ultimately to collect cash from your customer..

The goal of Payment Operations is to allow users to perform common Accounts Receivable actions, such as process a payment, without having to understand the Accounting implications. Payment Operations also has deep ties to Accounting so the business operations have to be "Accounting Aware".

So, how do you understand the invoice to cash business processes in Zuora?

Solution

Here is a list of common business processes or use cases that are performed as part of Payment Operations. 

The "What should I do when" are common high level use cases.  For each use case, the associated business process, user interlace operation as well as the transaction(s) that are created as a result.

See How do I create an invoice-to-cash test plan or plan an integration? to explore the user actions for Payment Operations.

What should I do when: Business Process User Interface Operation Transactions Created

...an end customer made a payment via wire transfer?

 

Record an External Payment against one or more invoices Process a Payment Payment 
...a credit card payment was taken directly at the payment gateway and needs to be recorded in Z-Billing? Record an External Payment against one or more invoices Process a Payment Payment 

...an end customer makes an ACH, Credit Card or other electronic payment?

Process an Electronic Payment against one or more invoices  Process a Payment (could be performed by Payment Run) Payment
...I want to automatically make a payment to a credit card using autopay? Process an Electronic Payment against one or more invoices Process a Payment (could be performed by Payment Run) Payment

...an end customer sent in a check for too much money?

Record an External Payment with an overpayment Process a Payment
  • Payment
  • Credit Balance  Adjustment
...an end customer pays a negative invoice? Record an External Payment with an overpayment Process a Payment
  • Payment
  • Credit Balance  Adjustment
...a merchant wants to collect more than the invoice amount as a “deposit”? Record an Electronic Payment with an overpayment. Process a Payment
  • Payment
  • Credit Balance  Adjustment
...an end customer makes a payment before any invoices are created? Apply a payment to the Credit Balance Process a Payment
  • Payment
  • Credit Balance  Adjustment

...an external payment was just recorded, but the wrong amount was entered?

Cancel a Payment Cancel a Payment

None, Payment status is updated

...a credit card  payment was just processed, but the wrong payment method was used? Cancel a Payment Cancel a Payment None, Payment status is updated
...a discount was not properly reflected and the merchant needs to apply 10% discount to a charge? Adjust Charges on an Invoice Adjust Invoice Charges Invoice Item Adjustment

...an end customer is given a $50 customer service credit on an invoice?

Issue a Credit to an Invoice Create Invoice Item Adjustment Invoice Item Adjustment
...an end customer asks for a credit? Issue a Credit to an Invoice Create Invoice Item Adjustment Invoice Item Adjustment

...a late fee was added to an invoice?

Add a Charge to an Invoice Create Invoice Item Adjustment Invoice Item Adjustment

...a customer pays a USD invoice with GBP wire transfer? 

In this case, the payment obligation is fulfilled, but due to the timing of the currency conversion with the bank, the converted USD amount is more than the invoice balance. The merchant does not want to create an overpayment, but wants to track this difference with a currency exchange GL account.

     

...after a merchant refunds the payment, the merchant wants to issue a credit for the refund?

Cancel an Invoice Item Adjustment Cancel this Invoice Item Adjustment None, Invoice Item Adjustment status is updated
...the invoice was incorrect, but the accounting period has closed, so the invoice needs to be “voided”? Cancel an Invoice Item Adjustment Cancel this Invoice Item Adjustment None, Invoice Item Adjustment status is updated

...a merchant added a late fee to an invoice incorrectly instead of a delivery fee?

Cancel an Invoice Item Adjustment Cancel this Invoice Item Adjustment None, Invoice Item Adjustment status is updated
...a merchant adjusted the charge for Subscription 1, but should have adjusted charge for Subscription 2? Cancel an Invoice Item Adjustment Cancel this Invoice Item Adjustment None, Invoice Item Adjustment status is updated

...an end customer cancelled service and gets a prorated credit, but the merchant wants to apply the credit later?

Transfer a negative Invoice Balance to the Credit Balance  Transfer to Credit Balance Credit Balance Adjustment
...a merchant wants to refund a negative invoice so the merchant transfers the invoice to the credit balance so that a non-referenced can be performed? Transfer a negative Invoice Balance to the Credit Balance  Transfer to Credit Balance Credit Balance Adjustment
...an end customer wants to use the Credit Balance to pay an invoice? Apply a Credit Balance to an Invoice Apply Credit Balance Credit Balance  Adjustment

...a negative invoice was incorrectly created, but the merchant already transferred the invoice balance to the credit balance?

In this case, the credit balance adjustment must be cancelled so that the negative invoice can be deleted.

Cancel a Credit Balance Adjustment Cancel the Credit Balance Adjustment None, Credit Balance Adjustment status is updated

... an electronic refund was made in the gateway and an external refund is recorded in Zuora?

Record an External “Referenced” Refund against a Payment  Refund a Payment Refund
...a check was mailed to the end customer for a refund and an external refund is recorded in Zuora? Record an External “Referenced” Refund against a Payment  Refund a Payment Refund

...a customer wants to change the credit card for a payment that has already been settled?

Issue an Electronic “Referenced” Refund against an Electronic Payment  Refund a Payment Refund
...a customer has a full refund of payment in the first month of the subscription? Issue an Electronic “Referenced” Refund against an Electronic Payment  Refund a Payment Refund
...an end customer made an overpayment and has requested a refund? Refund the Credit Balance  to the customer.  Refund the Credit Balance Refund
...a refund was inadvertently made to the wrong payment? Cancel a Refund Cancel the Refund None, Refund is updated

...an electronic refund was made in the gateway, and an external refund was recorded in Zuora?

Record an external "Referenced" refund against a payment Refund a payment Refund
...a check was mailed to the end customer for a refund and an external refund is recorded in Zuora? Record an external "Referenced" refund against a payment Refund a payment Refund

 

Last modified
19:31, 21 Apr 2016

Tags

Classifications

(not set)