How splitting an invoice works

Suppose a customer has an invoice that totals $100,000. The customer wants to make four payments spread across multiple billing periods on the invoice. You can split that invoice into four separate invoices, each for a specific percentage of the original amount. These percentages can be any amount that you want to set as long as the collection of split invoices total 100% of the original invoice. In our example, you can set the first split invoice to 40% ($40,000), then each successive split invoice to 30% ($30,000), 20% ($20,000), and 10% ($10,000).

If you turn on the Flexible Billing feature, you can split a draft invoice that originates from a subscription with Flexible Billing Attributes. The split invoices retain the billing attributes from the subscription. You can also choose not to retain the payment term, in this case, you need to update the payment term while splitting the draft invoice. See Use case of working with Flexible Billing.

If you add a new invoice to the billing period, Zuora will automatically distribute it across the split invoices.

You can do the following things:

• Split an existing draft invoice into two or more invoices. The splits are based on a percentage of the original invoice.
• Re-split an existing draft invoice, changing the percentage of the invoice split . You can reset and reconfigure the split percentages, and number of splits. You can only do this with invoices that have not been posted.

Invoice numbers

When you split (or re-split) an invoice, Zuora creates new, separate invoices. Each split invoice has its own invoice numbers and includes the same items as the original invoice. The original invoice is replaced by the new set of split invoices and will no longer be displayed.

For example, if you split Invoice INV0001 into three parts, this will create three new split invoices: INV0002, INV0003, and INV0004.

Splitting an invoice can cause a gap in the invoice numbering sequence.

Invoice percentages

You split an invoice into two or more parts by specifying the percentage of the whole that each split invoice represents. You can enter whole numbers or decimal numbers with up to nine decimal places. The total must add up to 100 percent.

All charges applied to invoice items, including discounts and taxes, are also split when you split the invoice.

If the split percentage results in uneven currency values, Zuora rounds the values for charges and discounts using the currency rounding rules you have specified in your billing settings, and applies any leftover amount to the final invoice.

Invoice dates

You can split an invoice into multiple draft invoices having different invoice dates and then execute another bill run that updates those draft invoices with new charges. If the new bill run has an invoice date later than the invoice date for any of the originally split invoices, all of the invoices that have earlier invoice dates will be updated with an invoice date equal to that of the bill run.

For example, if the original split invoices have the following dates:

• February 1
• March 15
• April 30

If you run another bill run with an invoice date of March 10 that updates those draft invoices, then the first invoice date will be changed to March 10. If you instead run a bill run on March 20, then the invoice dates of the first two invoices will be changed to March 20.

However, the payment terms (for example, net-30 or net-60) will not change.

Invoice notifications

If the communication profile that you're using emails the invoices when they're posted, Zuora will email all of the invoices to the customer at the same time. Because all split invoices must be posted at the same time, the invoice posted notification is triggered and acts on all of the split invoices at once.

If you want to mail the invoices separately, you must email them manually (instead of using the notification).

Custom fields

When you split a draft invoice, all custom fields of the resulting invoices will be given the same values as the original invoice. If you re-split a split invoice, the custom field values of the resulting invoices will also be given the same values as the original invoice.

When you have split invoices and you add a new invoice to the billing period, Zuora automatically distributes this new invoice across the split invoices. However, this causes the values of the split invoices' custom fields to be set to their default values, not the values of the original invoice.

Post split invoices and apply payments

When you post one part of a split invoice, or post the bill run for a split invoice, all of the split invoices will be posted. Similarly, if you unpost a split invoice, all of the split invoices will be unposted at the same time.

Once you apply a payment or an adjustment to any of the posted invoices, you cannot unpost any of the split invoices.

Cancel and delete split invoices

When canceling split invoices, they are treated as a group. If you cancel any of the split invoices, then all of the invoices will be canceled.

However, you can delete a single split invoice without deleting all related split invoices. You can only delete an invoice that has been canceled.