This guide details the configuration of invoice processing options, including handling overpayments and underpayments, specifying invoice number prefixes, and selecting payment methods.

1. Configure the 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. Configure the underpayment behavior. Underpayment refers to a scenario in which the 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. Specify the invoice number prefix, which is the input prefix used in invoice numbering. You can also enter multiple invoice prefixes separated by a comma.

   For example, company Z identifies their invoices by company-specific invoice numbering of ZCODE11223344 or ZCODE00001234. Invoice Number Prefix: ZCODE.

4. Identify Payment Method

   • Cash
   • Check
   • Wire Transfer
   • Other

5. Optional: Select Lenient Matching Lenient matching helps avoid unnecessary error reports by matching lockbox invoice and account numbers to Zuora fields without using standard or exact numbers. Zuora recommends that lenient matching is enabled. Lenient matching follows these rules:

   • Invoice and account numbers cannot have more than 8 digits. Otherwise, the file will be rejected.

   • If an invoice or account number includes less than 8 digits, the system will add in necessary 0s in front of the number so that all invoice or account numbers have 8 digits.

   • For example, an invoice in the lockbox file is listed as 1234, lenient matching will recognize the invoice as INV00001234.

6. 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.

7. 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.

8. Click Create Lockbox.