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refunding a portion of an invoice that was already paid, apply that refund to a new invoice

We have a customer who purchased an annual subscription in January and paid that annual invoice up front.  They want to cancel their existing subscription and start a NEW subscription in September, and would like to apply the payment for the unused portion of their subscription (today through their renewal in January) to their new invoice.  This articlehttps://knowledgecenter.zuora.com/CB_Billing/G_Credit_Balances/A_Creating_Credit_Balances suggests that we need to apply the overpayment to the new invoice, but we don't really have an overpayment?  or does that happen when you cancel the subcription in Zuora?  Any help is much appreciated !!  

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Re: refunding a portion of an invoice that was already paid, apply that refund to a new invoice

@hdeschamps when you cancel a subscription, if you have proration enabled in billing, a new invoice will be created with a negative amount for the unused portion of the subscription.

 

As an easy example, lets say the customer signed up for 12 months on January 1 for $100 per month. They would have been invoiced $1200 and they paid the $1200 in full on the first invoice.

 

Now in September they want to move to a new subscription. You cancel the original 12 month plan that began in January on September 1 which results in a proration credit of $400 for the 4 remaining months in the term. A negative invoice of -$400 is created.

 

You can then create the new subscription (for examples sake lets say its a new 12 month subscription at $200 per month going from September 1, 2017 to September 1, 2018). This will result in an invoice of $2400.

 

The final step is to transfer the -$400 credit on the first invoice to the account credit balance and then use that credit balance to apply to the $2400 new invoice bringing its total to $2000.

 

The customer then pays you the $2000 :-)