Configure how Zuora processes lockbox payments for invoices and accounts, including overpayments, underpayments, and unapplied payments.

1. Select the invoice overpayment behavior.

   An overpayment occurs when the payment amount is greater than the invoice amount.

   • Reject Lockbox Record: Zuora does not accept the payment.
   • Pay as Credit Balance on Account: Zuora processes the invoice payment and applies the remaining balance as a credit to the customer's account.
   • Find Next Oldest Invoice (if none, create credit): Zuora pays the current invoice and applies the remaining balance to the most recent outstanding invoice. If no outstanding invoice exists, Zuora places the balance on the account as a credit.
2. Select the invoice underpayment behavior.

   An underpayment occurs when the payment amount is less than the invoice amount.

   • Reject Lockbox Record: Zuora does not accept the payment.
   • Process Lockbox Record: Zuora processes the payment and leaves the outstanding balance on the customer's account.
3. Select the account document processing option.
   • Unapplied Payment: Zuora applies the payment as an unapplied payment that is not attached to any billing documents. This option is available only when the Invoice Settlement feature is enabled for your Zuora tenant.
   • Invoices Only: Zuora applies payments based on the invoice information in the lockbox file.
4. Select the account overpayment option.
   • Pay as Credit Balance on Account: Zuora processes the invoice payment and applies the remaining balance as a credit to the customer's account.
   • Reject Lockbox Record: Zuora does not accept the payment.
5. Identify the payment method.
   • Cash
   • Check
   • Wire Transfer
   • Other
6. Optional: Select Process by Invoice First to apply the payment against the invoice before applying it against the account.
7. Optional: If you use the Invoice Settlement feature, select Invoice Settlement.

   For more information, see Invoice Settlement.

8. Optional: Select File Processing Review to review ingested payment records before Zuora processes the payments.

   Files awaiting review remain in Paused status until you complete your review. For more information about reviewing payment records on the Runs tab, see View lockbox runs.

9. Click Create Lockbox.