Settings

The following settings are intended as one-way transition settings for Invoice Settlement Harmonization. After either setting is enabled, it cannot be disabled:

• Enable credit memo generation instead of negative invoices - Enable this setting to generate credit memos instead of negative invoices for eligible credit transactions, such as subscription cancellations or product removals.

  After this setting is enabled, Zuora uses the Invoice/Credit Memo generation rule in Billing Rules to determine how charges are grouped into invoices and credit memos.

  Before enabling this setting, make sure there are no draft negative invoices. If draft negative invoices exist, Zuora cannot enable credit memo generation until those invoices are posted.

  When this setting is Off, Zuora continues to create negative invoices for eligible credit transactions. These negative invoices can be transferred to credit balance adjustments.

• Collect payments for debit memos using payment run - Enable this setting to include eligible debit memos in payment runs.

  After this setting is enabled, Zuora uses Invoice Settlement payment application objects to track payment applications to invoices and debit memos.

Behavior when Invoice Settlement is enabled: When Invoice Settlement is enabled, Zuora uses Invoice Settlement behavior for credit memo generation and debit memo collection. These Invoice Settlement behaviors take precedence over conflicting Invoice Settlement Harmonization settings.

Unapply behavior for payments created through payment run

In an ISH-only environment, payments created through Payment Run use the legacy Payment model by default. Because unapply functionality is available only in the Invoice Settlement framework, unapply operations are not supported for payments that use the legacy Payment model.

The Invoice Settlement payment model provides advanced payment capabilities, including partial unapply and more flexible payment operations. The legacy Payment object does not support these capabilities, and therefore Zuora blocks unapply operations for payments created through the legacy payment model.

The Collect payments for debit memos using payment run setting changes this behavior. When you enable this setting, payments created through Payment Run use the Invoice Settlement payment model instead of the legacy Payment model. As a result, customers can perform unapply operations on those payments.

Because this setting is automatically enabled when IS and ISH coexist, payments created through Payment Run in coexistence environments use the Invoice Settlement payment model and support unapply operations.

Additional configurations

Ensure that the following configurations are completed and available.

To start generating credit and debit memos

• Update the invoice template to remove any IIA references and add memo references.

• Create and update templates

  • Create and upload billing document templates (Billing settings)

  • Update accounts with appropriate Credit Memo/Debit Memo templates

During the template setup, one of the templates can be marked as a default template for credit and debit memos. The default template is automatically updated for each customer account. For customer accounts that use a different template, the user can update the template at the customer account level.

• Create custom fields for Credit Memo/Debit Memo/Memo Items

• Configure the following:

  • Accounting codes

  • Reason codes

  • Notifications of credit memo/debit memo

• Sequence Set of billing documents (configuration)

• Set up billing rules for memo

  • Invoice/Credit Memo generation rule

  • Create credit memos mirroring invoice items

  • Available to credit validation for credit memos

• Settlement and application rules