Refund is provided for undelivered services
Learn how the process provides refunds for undelivered services, including the cancelation procedures and invoice adjustments.
Example: A customer has paid $100 for service for the period of April 1 – April 30. The customer called on April 16 to cancel the service.
- The effective date of the cancellation must be April 16.
- The customer's access to the system is revoked immediately.
- The negative invoice created will be for -$50 for the period April 16 – April 30.
- Net revenue for this series of invoices will be $50 for the period April 1 – April 15.
- Initial invoice = $100 for the period April 1 – April 30
- Negative cancellation invoice = -$50 for the period of April 16 – April 30.
Depending on your tenant type, perform one of the following tasks:
- For Orders or Orders Harmonization tenant users, to perform a cancellation and provide a refund, you can enter the refund amount $50 when performing the cancellation. For steps and more refund examples, see Cancel subscriptions and refund end customers automatically.
- For Subscribe and Amend users, to perform a cancellation and provide a refund, perform the following actions:
- Perform a subscription cancellation that is effective on the day the customer canceled. For more information, see Cancel subscriptions.
- Revoke the customer's access to the subscribed product or service, effective immediately. In the next bill run, Zuora creates a negative prorated invoice that reflects the undelivered portion of the service. This negative invoice is used to offset any undelivered revenue from the initial invoice.
- Transfer the negative invoice to the credit balance.This increases the balance of this invoice to $0.
- Refund the credit balance to the customer. If a customer is still paying for other uncancelled services from your business, you can choose to hold the credit balance to offset a future invoice.