Example 3: Refund amount greater than calculated credit memo
This example demonstrates a refund of $100, which exceeds the calculated credit memo of $74.2, with the outstanding balance written off.
In this example, based on the business policy, you have decided to refund $100.0 to the end customer. Among the $100 refund, $74.2 is for the unconsumed subscription period, and $25.8 is for the compensation to the end customer agreed upon between you and the end customer.
The following table shows that you specify this refund of $100, greater than the calculated credit memo of $74.2, and choose to write off the outstanding balance of the invoice.
|
Your setting |
Refund |
$100 | ||
|---|---|---|---|---|
|
Zuora processed result |
Payment |
$100 |
Applied amount |
$0 |
|
Credit Memo 1 |
$74.2 |
Unapplied amount |
$0 | |
|
Credit Memo 2 |
$25.8 |
Unapplied amount |
$0 | |
|
Invoice (01/01/2022 ~ 1/31/2022) |
$100 |
Balance |
$0 |
The result is: the refund of $100 is unapplied from the original payment of $100, so the payment amount applied to the invoice becomes $0. Besides credit memo 1 of $74.2 for the unconsumed subscription period, credit memo 2 of $25.8 to write off the outstanding balance of the invoice is also automatically generated and applied to the invoice.