This document outlines the process options for handling payments based on account and invoice rules, including behaviors for overpayments and underpayments, and optional features like Invoice Settlement and File Processing Review.

When this processing option is selected, payments will be processed based on both invoice rules and account rules. If payments cannot be processed based on the invoice information (for example, the invoice number is incorrect), payments will still be processed based on the account information and processing rules.

1. Select the invoice overpayment behavior. Overpayment refers to a scenario in which the payment amount is greater than the invoice amount.

   • Reject Lockbox Record - Payment will not be accepted by the system.
   • Pay as Credit Balance on Account - Invoice payment will be processed and the remaining balance will become a credit on customer's account.
   • Find Next Oldest Invoice (if none, create credit) - Current invoice will be paid and the remaining balance will be applied to the most recent outstanding invoice. If there is no outstanding invoice, the balance will be placed on the account as a credit.

2. Select the Invoice underpayment behavior. Payment amount is less than the invoice amount.

   • Reject Lockbox Record - Payment will not be accepted by the system.
   • Process Lockbox Record - Payment will be processed by the system with an outstanding balance remaining on customer's account.

3. Select the account document processing option.

   • Unapplied Payment - Payments will be applied as an unapplied payment that is not attached to any billing documents. This option is applicable only if the Invoice Settlement feature is enabled for your Zuora tenant.
   • Invoices Only - Payments will be made based on the invoice information in the lockbox file.

4. Select the Account Overpayment Option.

   • Pay as Credit Balance on Account - Invoice payment will be processed and the remaining balance will become a credit on customer's account.

   • Reject Lockbox Record - Payment will not be accepted by the system.

5. Identify the payment method.

   • Cash
   • Check
   • Wire Transfer
   • Other
6. Optional: Enable Process by Invoice First. When this option is enabled, the payment will be made against the invoice first and then against the account.

7. Optional: If you use the Invoice Settlement feature, select Invoice Settlement. It must be enabled if the feature is supported. For more information about this feature, see Invoice Settlement for more information.

8. Optional: Select File Processing Review. If this option is enabled, you can review the ingested payment records before payments are processed. The files to be reviewed will remain in the Paused status until you take further review actions. See View lockbox runs for details about how to review the payment records on the Runs tab.

9. Click Create Lockbox.