Date when the credit memo was synchronized with NetSuite. Only available if you have installed the Zuora Connector for NetSuite. Status of the credit memo’s synchronization with NetSuite. The specific schema of the memos object field in the request body depends on the value of the sourceType field.

Overview of credit memos and debit memos Zuora

Creates an ad-hoc credit memo from a product rate plan charge. Zuora supports the creation of credit memos from any type of product rate plan charge. The charges can also have any amount and any charge model, except for discout charge models. Whether to automatically post the credit memo after it is created. Setting this field to true, you do not need to separately call the Post credit memo operation to post the credit memo. If credit memos are generated during the bill run, you can set to email the credit memos upon posting.

  • Set the CREDIT_RULE field to L to apply this credit rule.
  • This parameter restricts the order of the data returned in the response.
  • The normal credit that provides a discount to the customer against a sales order or invoice.
  • Based on company policies, the FX gain loss amount may or may not be appropriate to be absorbed into revenue.

Zuora Revenue will update the BILLED_DEF_AMT and BILLED_REC_AMT values for this SO line to display how much has been billed and released. Invoice based CM-R lines are uploaded to Zuora Revenue with the ORIG_INV_LINE_ID field specified. Zuora Revenue will update the BILLED_DEF_AMT and BILLED_REC_AMT values on the SO line to display how much has been billed and released. SO based CM lines are uploaded to Zuora Revenue with the ORIG_SO_LINE_ID field specified.

Case VII: Writing off fully paid invoices with non-zero balance items

You can create credit memos to reduce invoices and account balances, and create debit memos to increase the amount customers owe you. In many countries, credit and debit memos are actually required by law for adjusting invoices. Based on this rule, the reversal adjustment starts from the last period backward until the credit memo amount is completely consumed. You want to give your customers a percentage or fixed amount discount on the price of a product or service only for a certain period of time. Whether the credit memo is excluded from the rule of automatically applying unapplied credit memos to invoices and debit memos during payment runs.

Zuora automatically generates credit memos during the bill runs for negative charges based on your invoice and credit memo generation rule. The number of credit memos that are generated during the bill run is displayed on the bill run detail page. Due to billing mistakes, service interruptions, or confusion about invoices, a customer might contact you to contest a charge on the invoice. In such cases, you might need to issue a credit or debit memo to resolve the dispute. For example, you apply the incorrect price to your customer because the wrong scale prices are used or a discount has not been applied. In such cases, you can issue a credit memo or debit memo to correct the amount on the mistaken invoice items.

  • An invoice is generated for Charge B and a credit memo is generated for Charge A.
  • This field is required for an external refund and must be left empty for an electronic refund.
  • Occasionally, a vendor might want to issue an ad hoc charge or credit, for example, a customer loyalty credit.
  • This parameter filters the response based on the totalTaxExemptAmount field.
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Generate a credit memo by using the API

Then, the following credit memo line is collected with the transaction type being CM and linked to line #1 of the original SO-123 sales order line. By default, the response data is displayed in descending order by credit memo number. If not provided, Zuora will generate a unique number per the sequence set on the account level. If the account-level sequence set is not specified, the system default sequence set is used. For more information, see Configure prefix and numbering for billing documents.

Credit memo transactions

SO based CM-R lines are uploaded to Zuora Revenue with the ORIG_SO_LINE_ID field specified. In this example, the following sales order is input to Zuora Revenue. For many finance teams, the only system “flexible enough” to handle each one of these one-offs is the handy dandy Microsoft Excel.

If no gateway is specified in the billing account, the default gateway of the corresponding tenant will be used. The ID of the gateway instance that processes the refund. This field can be specified only for electronic refunds. The ID must be a valid gateway instance ID, and this gateway must support the specific payment method.

After a memo is posted, you can email your customers a specific version of the memo PDF from the Zuora UI and REST API. After credit and debit memos have been generated, you can either download or email the memo PDF documents. Applies a posted credit memo to one or more invoices and debit memos. When a credit memo is applied, the total number of invoices and debit memos that the credit memo will apply to must be less than or equal to 1,000. By applying one or more credit memos to invoices with positive balances, you can reduce the invoice balances in the same way that applying a payment to an invoice.

You can create your custom credit memo and debit memo templates based on your company’s requirements. Zuora supports credit memo merge fields and debit memo merge fields to display certain information you want your customers to see. Occasionally, a vendor might want to issue an ad hoc charge or credit, for example, a customer loyalty credit.

Credit rules

In the same transaction line in Example 2, a return order (RORD) against the original order in a later date and transacted with F.Ex Rate as 1.07. You can get a copy of the credit memo or debit memo either from the memo menu or the History section of the memo detail page. If the credit memo amount is $450, the reversal adjustment is as follows. You’ll need the Invoice Settlement feature enabled in your Zuora tenant in order to have access to the above-mentioned functionalities. If you don’t have this feature enabled and would like to do so, submit a Zuora Support here.

The specific implementation might be different according to the option of the Create credit memos mirroring invoice items billing rule. You want to write off an invoice that is partially paid. The specific write-off implementation might be different according to the option zuora credit memo of the Create credit memos mirroring invoice items billing rule. Zuora uses the specified application rule to automatically allocate the credit at the item level if you have not specified item-level application amounts explicitly. Credit memos and debit memos are used to manage invoices and account balances.

In such cases, you can issue a prorated credit to your customer. Based on company policies, the FX gain loss amount may or may not be appropriate to be absorbed into revenue. With that said, Zuora Revenue’s Unbill FX Report is provided to customers for identifying the FX Gain/Loss amount. Customers can choose to reclass the amount using MJE or their GL Journal Entry. T.Curr, F.Ex.Rate and G.Ex.Rate are sourced from upstream systems upon transactional data (SO/INV/CM) is collected into Zuora Revenue.

If you set this field to true, a payment run does not pick up this credit memo or apply it to other invoices or debit memos. To ensure optimal performance of the credit memos page, the UI displays a maximum of 200 line-level items for an invoice. The line items include invoice items and taxation items. When an invoice includes more than 200 line-level items, the individual items will not be displayed in the UI when applying or unapplying a credit memo. You can still apply or unapply credit memo amounts at the header level for an invoice with more than 200 items.

Set the CREDIT_RULE field to F to apply this credit rule. Based on this rule, the credit memo amount is consumed based on the specified start date and end date. If no start and end dates are provided for the credit memo, the credit memo amount is amortized based on the percentage of the billed amount for the period. The following credit memo of $200 is input to Zuora Revenue to adjust the invoice based on the LIFO credit rule. This credit memo consumes the value from the last period, Jun-19, and it does not impact any other periods. When you create a credit or debit memo for usage charges, the quantity must be a positive value.