Payment adjustment concepts

➤ Applicable Amount ≠ Received Amount

When the amount paid differs from the amount received, Zuora calculates two values:

• Received Amount: The amount credited to your bank account..

• Applicable Amount: The total amount that the customer intended to pay, including bank charges or exchange-rate differences.

Zuora uses the applicable amount when matching payments so that invoices can be marked as paid in full when bank charges or currency conversion affect the received amount.

➤ Two Sources for Bank Charge Information

Zuora obtains bank charge information from one of two sources:

• Bank statement: If the statement includes charge details, such as Bank Charges or Original Amount, Zuora reads the details automatically.

• Configuration: If the statement does not include charge details, Zuora applies the configured deviation rules.

  • For example, allow a 1% deviation with a $50 cap.

  • Configure these limits by currency or bank.

Bank charge adjustments

If the received payment is lower than the invoice amount and the difference is within the configured deviation, Zuora takes these actions:

• Records the bank charge as a payment adjustment.

• The invoice is still marked Paid in Full using the Applicable Amount.

• The adjustment is reflected in your ERP as a separate expense entry.

  • Hence a separate Chart of Accounts have to be specified so that Zuora can post the Bank Charges in the right journal.

Bank charge example

Consider an invoice with these values:

1. Invoice Amount: $1000.00

2. Payment received: $998.00

3. Bank charges detected: $2.00

In the ERP system, Zuora performs these actions:

1. Creates a $1000.00 payment and applies it to the invoice.

2. Creates a separate journal entry for the bank charges.