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Credit Memo amount is distributed all over the Product and taxes.

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Zuora Support

Credit Memo amount is distributed all over the Product and taxes.

Problem: Why is a Credit memo? The applied amounts Ex: 840.00 USD is spread over all products and related taxes.?

CSA.PNG

Basically the applied amounts in a credit note only apply to the related product and taxes (and not spread over all products). Need to understand why it was spreading up?


Solution: Looking into the Payment Settings, the "Configure Application Rule" Setting needs to set up as this way to avoid the issue. These settings used to Configure which item-level allocation rule to use when payments are applied.

Set the settings as First In First Out along with the Exclude from auto-apply rules should be unchecked in a Credit memo.

CSA '1'.PNG

Default application rule for apply: First In First Out
Default application rule for unapply: First In First Out

CSA '2'.PNG


With the FIFO application rule set, Zuora allocates a payment or credit memo to an invoice or debit memo at the item level. By these settings, the applied amount will only apply in credit memo to the related product.

 




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