Subscriptions cancelation and write off all unpaid invoices
This topic explains subscriptions cancelation and generate credit memos to write off unpaid invoices automatically during the cancelation process.
An end customer has a subscription with an invoice balance equal to the invoice total amount. No payment nor credit memo was created. In this case, if you want to cancel the subscription and stop the end customer from making a further payment, you can write off all unpaid invoices during subscription cancellation. By writing off all unpaid invoices, credit memos are automatically generated and applied to invoices to make the balance of the invoice 0, which saves the end customer’s effort to create credit memos manually after the subscription cancellation.
Prerequisites
Before you cancel a subscription and write off all unpaid invoices, ensure that the following requirements are met:
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The Orders and Workflow features must have been enabled. To enable the Workflow feature, click the Workflow tab on the left navigation panel.
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The Invoice Settlement feature must have been enabled to access write-off settings.
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If you are using the Zuora UI:
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Enable Order UI is checked in Billing Settings > Default Subscription and Order Setting.
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The reinvented subscription details page is enabled. See View details of subscriptions through the reinvented UI .
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Invoices must be issued first. For example, the bill run has been created.
Define memo date for write off
You can define a Document Date for write-offs, generate a Credit Memo, and determine the Effective Application Date during the cancellation process.
When a specific Memo Date is defined and the Write-off option is selected:
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A new Credit Memo might be generated during the cancellation process for the invoiced, but unconsumed service period. The Memo date will be the specified Document Date.
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The system will compare the Memo Date, Original Invoice Date, and Today's Date, and select the latest (maximum) of the three as the effective application date.
Subsequently, if the invoice balance remains non-zero, another credit memo is created and applied to the invoice to write off the invoice. See more details in write-off invoices.