Split invoice considerations
Key considerations when splitting invoices by amount, including how Zuora allocates charges and taxes, handles different tax modes, enforces reversal rules, and processes split operations asynchronously.
Amount allocation
When you split an invoice by amount:
- The split amounts must add up exactly to the original invoice total.
- Each split amount must be at least the minimum currency unit, such as $0.01 for USD or ¥1 for JPY.
- Zuora allocates charges, discounts, and taxes proportionally by using the Largest Remainder algorithm.
- Small rounding differences can occur, but Zuora adjusts the allocations so that both the original row totals and the split invoice totals remain exact.
Example:
Suppose you split a $130.00 invoice into three invoices for $50.00, $50.00, and $30.00. The original invoice contains:
- Charge: $120.00
- Tax: $10.00
- Total: $130.00
Because the amounts do not divide evenly, Zuora uses the Largest Remainder algorithm to preserve exact totals.
- Invoice 1 ($50.00): Charge $46.15, Tax $3.85
- Invoice 2 ($50.00): Charge $46.16, Tax $3.84
- Invoice 3 ($30.00): Charge $27.69, Tax $2.31
This ensures that:
- Total charges = $120.00
- Total tax = $10.00
- Total invoice amounts = $130.00
Tax handling
Exclusive tax mode
- If draft tax is not calculated, enter split amounts excluding tax.
- Tax is calculated after posting.
- If draft tax is calculated, split amounts represent the total amounts including tax.
- Zuora allocates tax proportionally across the split invoices.
Inclusive tax mode
- Split amounts represent the total invoice amounts.
- Tax is included in those amounts and is allocated proportionally.
Reversal constraints
When reversing split invoices:
- You can reverse only invoices created through splitting, where
isSplit = true. - You cannot reverse the original parent invoice directly.
- Memo Date and Apply Effective Date must be the same as or later than all split invoice dates.
- Reversing one split invoice reverses all related split invoices from the same original invoice.
Split operation considerations
- Split processing is asynchronous.
- Large invoices can take longer to process.
- You can track progress by using the job ID returned in the API response.
- A single split operation supports up to 20 split invoices.