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Prepayment Billing

This topic explains how Zuora generates prepayment invoices for commitment-based billing schedules and how prepaid installments appear on invoices.

Zuora generates prepayment invoices based on the billing schedule configured for the commitment. Each installment is billed as a separate invoice line using the commitment name as the line description, making it easy to identify prepayment activity on the invoice.

The following example shows how a prepaid installment appears on an invoice:

Line

Description

Amount

1

Annual Commitment – Prepaid Installment

$100