Support pro-rated refunds

[Nest]

Our subscription cancelation policy is that a customer can cancel anytime and receive a pro-rated refund for the unused time.  For example if a user paid $10 for a monthly subscription on Apr 1 and cancelled on Apr 15, then we would end service immediately on Apr 15 and provide a $5 account credit or refund.  We are requesting that Zuora support pro-rated refunds so that it is easy to support this business requirement.

[nharlow]

Hi,

With our Advanced AR Settlement capability, we will be able to support this. In your case, when the user cancels the service, we would issue a proration credit for the unused portion of the service. By default under the new features, this will result in a credit memo for the pro-rated amount. You can do either of the following:

1. Unapply a portion of the payment equal to the amount of the credit. Refund the unapplied amount. Apply the credit memo with the proration credit to the invoice to settle the balance.

2. Refund the customer directly from the credit memo.

With both of these options, you're able to issue a prorated refund to the user.