Split Payment
Split Payments let you divide a single incoming payment into multiple customer-specific child payments, allocate amounts and invoices across customers and subsidiaries, and ensure accurate posting and audit traceability in Zuora.
Split Payments — also referred to as Group Payments — allow you to divide a single payment into multiple customer-specific payments. This feature is designed to handle real-world scenarios where one bank transaction covers invoices from multiple, sometimes unrelated, customers. Zuora enables you to divide and apply such payments across customers, invoices, and subsidiaries — ensuring accurate posting and reporting for every entity involved.
Split Payments are typically used in the following cases:
Case 1: Third-Party or Parent-Level Consolidation
When a third-party vendor or a parent entity sends one consolidated payment covering multiple customers.
Case 2: Split within the same family
Creates one card per child customer within a parent-child family.
Case 3: Cross-Company Payment (Unlinked Entities)
When one company pays on behalf of another within a Group of Companies, but there's no system-defined relationship (unlinked entities). In this case, Zuora allows you to manually divide the payment across customers and invoices, even if they aren't hierarchically related.
For scenarios where companies are linked under a defined parent-child structure, see the section "Parent Child Matching" in Smart Match AI for automated relationship handling.
Key concepts
Parent Payment: The original incoming payment (from the bank). It acts as a container for all subsequent split payments.
Child Payments: The payments created after splitting. Each represents a specific customer's share of the parent payment.
Audit Link: Every child payment maintains a traceable link to the parent, preserving audit history and payment lineage.
Remittance Copy :The remittance attached to the parent is automatically cloned for each child, ensuring that all related payments carry the same reference material.
How split payments work
Identify the Payment to Split:
Open the Payment Details view for any payment containing invoices across multiple customers.
You'll see an option to add an additional customer to the same payment.
Add additional customers to divide the payment.
Allocate Amounts and Invoices:
Zuora displays a split summary where you can assign customers and enter the split amounts.
The total split must equal the original payment amount.
For each customer, specify how much of the total payment applies to them.
You may assign invoices directly. You would not be able to leave the amount On-Account
Review and Confirm:
Zuora validates that:
Total = Original Payment Amount
Each split is assigned to a valid customer
On confirmation, Zuora automatically creates new child payment records — one per customer.
Post to ERP
Each child payment is independently posted to your ERP (NetSuite, Dynamics 365, Sage X3, etc.).
Posting logs show the individual status of each payment.
Failures (e.g., invalid COA or customer mismatch) appear under Exceptions for review
Once the payment is identified as Split, add a customer.
If the amount cannot be fully distributed across invoices, the amount can be parked for a customer. The Total Payment has to be either allocated to an invoice or parked on-account for a customer.
Example
This example shows a fully allocated payment — meaning the total of all applied and on-account amounts equals the parent payment value.
Parent Payment (Applicable): $10,000.00
Customer 1 – BlueOrbit Ventures LLP
Allocated Amount: $5,540.00
Invoices:
INV24011897263 – $5000.00
Amount Parked for the customer:
Amount parked to BlueOrbit Ventures LLP on Account - $440.00
Subsidiary: Honeycomb Holdings Inc.
Customer 2 – InnoTech Labs Pvt Ltd
Allocated Amount: $4,560.00
Invoices:
INV24011897257 – $2000.00
INV24011897259 – $2100.00
Amount Parked for the customer:
Amount parked to InnoTech Labs Pvt Ltd on Account - $460.00
Subsidiary: Honeycomb Holdings Inc.
Total Allocated Across All Customers: $10,000.00
Allocated to customer not to invoice: $900.00
Unallocated Amount: 0.00
System rules and validation
Limitations:
If a portion of the payment cannot be linked to an invoice immediately, it can be parked On Account within a customer. The allocated amount(including amount applied for Invoice and parked on-account for a customer) must match the total payment amount exactly before the split can be confirmed or posted.
Parent Payments cannot be re-split after confirmation or posting. However, the parent payment can still be edited later — as long as it has not been split again or locked for posting.
Payments cannot be merged after confirmation or posting. Once a parent payment is divided into multiple child payments, it cannot be merged back into a single payment.
Child Payments cannot be split further. Once created, each child payment is treated as an independent transaction and follows standard payment and posting rules.
Turning it on:
Turning it on. Enable Split Payment under Settings → Cash Application → Apply & Post. This is a master switch: it lets you add multiple payment cards and reveals the split options below. On its own it does not auto-split a payment — you choose how splitting behaves with the options below.
The following are the split options:
Split within the same customer family — one card per child customer within a parent-child family.
Split across unrelated customers — one card per family when a payment spans unrelated families.
Split across multiple subsidiaries — when on, invoices are split into separate cards by subsidiary.
Note:This replaces the earlier "apply a single payment across multiple subsidiaries" setting; its meaning is inverted and it is now off by default.
Posting. Each card posts to your ERP as an independent payment. A payment can be posted only when the amount allocated across the cards matches the payment.
The parent payment's remittance file is automatically cloned and attached to all child payments for traceability.
Allocating amounts. Assign customers and invoices to each card; the total across cards must equal the payment amount. Use Auto-distribute to allocate automatically across a customer's invoices oldest-first (FIFO).
Unallocated amounts. In a single-family split, any amount you can't allocate is parked to the parent — a parent card appears only when there is a remainder. In a cross-family payment, a leftover stays unallocated for you to place on any customer.