How splitting an invoice works

When you split an invoice, Zuora creates multiple new draft invoices and changes the original invoice status to Split.

Each split invoice contains a proportional allocation of:

• Charges
• Discounts
• Tax amounts
• Tax-exempt amounts

Zuora uses the Largest Remainder algorithm to distribute amounts across split invoices while maintaining exact totals. This ensures that each original row total is preserved and that each split invoice total matches its target amount.

For example, if an invoice totals $100,000.00, you can split it into four invoices by percentage, such as 40%, 30%, 20%, and 10%, or by exact amounts that total $100,000.00.

If you turn on Flexible Billing, 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 that case, update the payment term while splitting the draft invoice. For more information, see Use case of working with Flexible Billing.

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

You can do the following:

• Split an existing draft invoice into two or more invoices by percentage or by amount.

• Re-split an existing draft invoice by changing the split percentages, split amounts, or number of splits. You can do this only for 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 number and includes the same invoice items as the original invoice.

The original invoice is not deleted. Instead, it remains in Zuora as a non-payable, zero-value record for reporting and audit purposes, and its status changes to Split.

For example, if you split invoice INV0001 into three parts, Zuora creates three new split invoices, such as INV0002, INV0003, and INV0004.

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

Split percentages and split amounts

You can split an invoice into two or more parts by specifying either:

• The percentage of the original invoice total that each split invoice represents, or
• The target amount for each split invoice.

For percentage-based splitting:

• You can enter whole numbers or decimal numbers with up to nine decimal places.
• The total must add up to 100%.

For amount-based splitting:

• The sum of the split amounts must exactly equal the original invoice total.
• Each split amount must be at least the minimum currency unit.
• A single split operation supports a minimum of 2 and a maximum of 20 split invoices.

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

If the split results in uneven currency values, Zuora applies currency rounding rules and uses the Largest Remainder algorithm to preserve exact row totals and exact invoice totals across the split invoices.

Draft invoices

You can split an invoice into multiple draft invoices, each with a different invoice date.

However, if you attempt to run another bill run to generate a new invoice using the same billing attributes—such as Bill To Contact, Payment Term, and Currency, the bill run fails because the previously split invoices remain in draft status and have not yet been posted.

To proceed, you must either post or cancel the existing draft split invoices before executing a new bill run.

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, delete, and reverse split invoices

Split invoices are managed as a group when you cancel them. If you cancel any split invoice, Zuora automatically cancels all related invoices, including the original invoice. The original invoice status changes from Split to Canceled.

You can delete a split invoice individually without deleting the other related invoices. However, you can delete an invoice only after it has been canceled.

You can also reverse split invoices. When you reverse one split invoice, Zuora automatically reverses all split invoices created from the same original invoice. The original invoice status then changes from Split to Canceled.

Invoice in Split status

After you split an invoice, its status changes from Draft to Split. The newly created split invoices maintain a reference to the original invoice.

When an invoice is in Split status:

• You cannot post it.
• You cannot cancel it.
• You cannot reverse it.
• You can still update custom fields.
• You can add or edit notes on the invoice.

The invoice remains as a non-payable, zero-value record and continues to maintain links to related data such as usage records and rating details.

If you reverse any split invoice, Zuora automatically reverses all related split invoices. The original invoice status keeps in Split status.

Identify split invoices

Zuora uses the isSplit field to identify split invoices:

• For the original invoice, isSplit = false. The Split status indicates that the invoice is the parent invoice.

• For new invoices created by splitting, isSplit = true.

You can query the relationship between the original invoice and its split invoices by using Data Query or Object Query.