How do I account for returned items withheld from an invoice payment?
Example: Customer has an invoice for $5,000. They returned an item for $250 but it hasn't been received or the return hasn't been processed. They pay $4,750 ... how do I account for the $250 in Zuora? Thank you for insight!
Re: How do I account for returned items withheld from an invoice payment?
@CDeCoste - this will depend on how your product is set up when you have added it to your subscription and the type of charge it is.
Is it a one-time charge or a recurring charge?
Is the returned item a stand-alone product or part of a group of rate plan charges?
The reason why I ask is because you can use amendments to remove it, generate a negative invoice (proration credit), and move that amount to the credit balance account so you can apply it to the existing invoice.
Your other option is to let apply the $4,750 payment to the invoice and do an invoice item adjustment to write off the returned item. This second option works well if you are adjusting out a one-time charge, but may have some implications if the fee is recurring.
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