Prepaid Cash in Payment Run
This document explains how the prepaid cash feature affects payment runs, allowing the application of credit memos or unapplied payments with the same currency to invoices or debit memos with different currencies.
With the Invoice Settlement Harmonization enabled, customers could still leverage the feature prepaid cash in the payment run. This will allow the customer to apply a credit memo or unapplied payment with the same currency to the invoice or debit memo with a currency different from the currency on the billing account.
The Prepaid Cash with Drawdown feature has been deprecated.
With the prepaid cash feature enabled, there would be a behavior change in the payment run that is listed below:
|
Payment Run without Prepaid Cash |
Payment Run with Prepaid Cash |
|---|---|
|
Query the invoices that can be collected. |
Query the invoices that can be collected. |
|
N/A |
Query the debit memos can be collected. |
|
Apply credit balance to the invoice. |
Apply a credit balance to the invoice using the same currency as the billing account default currency. |
|
N/A |
Apply a credit memo to the invoice using the same currency. |
|
N/A |
Apply unapplied payment to the invoice using the same currency. |
|
Create payment to collect the remaining invoice balance with the IS model. This payment will be migrated using the real-time migration feature. |
Create payment to collect the remaining invoice balance using the IS Model. |
|
Update payment run generates summary incremental. |
Update payment run statistic metrics. |
Use case 1
Apply credit memo or unapplied payment with the same currency to the invoice with currency that is different from the currency on the billing account.
|
Steps |
Description |
Specifications |
|---|---|---|
|
Step 1 |
Create a subscription with prepayment enabled for the account ACC-01 |
ACC-01, Currency: USD |
|
Step 2 |
Allow the order to generate invoice INV-01 with balance 100 USD. |
INV-01, Balance: 100, Currency: USD |
|
Step 3 |
Create a payment P-01 from ACC-01 with Prepayment enabled of 100 USD with API. |
P-01, Unapplied amount: 100, Currency: USD |
|
Step 4 |
Create a payment run for ACC-01 |
PR-01 will be created. |
|
Step 5 |
Without prepaid cash: New Payment P-02 will be generated to settle the balance on invoice INV-01. ( P-01 unapplied amount: 100 USD, INV-01 balance: 0 USD) |
P-01, Unapplied amount: 100, Currency: USD P-02, Unapplied amount: 0, Currency: USD INV-01, Balance: 0, Currency: USD |
|
Step 6 |
With prepaid cash: Payment run will process INV-01 with open balance and the prepayment P-01 will be used to consume the balance of the INV-01 and there will be no payments generated during the payment run. ( P-01 unapplied amount: 0 USD, INV-01 balance: 0 USD) |
P-01, Unapplied amount: 0, Currency: USD INV-01, Balance: 0, Currency: USD |