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Re: Option to allow proration to factor in Invoice Adjustments - Status changed to: Unlikely

Option to allow proration to factor in Invoice Adjustments

When an Agent refunds a past payment, this results in an outstanding balance being created for the Invoice that the past payment relates to.
Zuora recommend to perform an Invoice Adjustment to remove the outstanding balance on the Invoice. Unfortunately if a cancellation occurs during that Invoiced period (Month / Year) then proration does not factor in the fact that the customer had a refund and hence did not pay the full amount. Proration will instead use the orginal value of the Invoiced period for it's calculation, this will result in the customer receiving a larger prorated amount than they deserve.



In an Annual Subscription a customer pays £100 per year. Assume the subscription starts the 1st Jan.

If that customer calls to complain about poor service during March, our Agent will give them a £20 refund and perform an Invoice Adjustment to remove the outstanding £20 balance.

If that customer calls up on the 1st July (exactly halfway through the annual sub) and convinces our Agent that their experience was terrible and they want an immediate cancellation, then the Agent will perform an immediate Cancellation. This will result in a negative prorated invoice for the unused period, which we'll refund back to the customer. As we've performed an Invoice Adjustment the correct amount to give back to the customer would be (100 - 20) / 2 = £40, instead Zuora ignores the Adjustment and calculates 100 / 2 = £50 as the prorated amout.

1 Comment
Zuora Alumni
Status changed to: Unlikely



Thanks for the input on this frustrating use case. We are planning to add support for credit memos and some enhancements to payment operations to the product within the next few months. We expect these enhancements to address more effectively use cases that we currently handle by adjusting invoices and invoice items today. As such, we are unlikely to invest in further enhancements to other invoice adjustment mechanisms.


Stay tuned for more info on these new capabilities.