Credit and debit memos are a widely adopted and well-understood billing construct that makes it easier to audit a company's billing and verify the correctness of receivables accounting.Īfter the Invoice Settlement feature, which includes credit and debit memo support, is enabled, it fully replaces Invoice Adjustments, Invoice Item Adjustments, and Credit Balance Adjustments. These regulations are particularly widespread in Europe. In many countries, credit and debit memos are actually required by law for adjusting invoices. You can find the memos list by navigating to Billing > Credit and Debit Memos in the left navigation from the Zuora UI. Directly creating credit memos in this case makes it easier to manage negative charges and balances for Accounts Receivable settlement purposes. Rather than generating negative invoices, the bill run creates credit memos populated by any negative charge event resulting from the charge rating process. With a positive balance, standalone credit memos can be applied to any invoice or debit memo. These charges do not have to be part of any subscription.

The memo items refer to one-time product rate plan charges. Standalone. The purpose of these memos is to raise an ad hoc charge or credit not related to a specific invoice.In this case, the memo refers to a specific invoice the memo items refer to corresponding invoice items. These memos aim to adjust specific items in a given invoice. The credit and debit memos can be issued in the following ways: With the Invoice Settlement feature enabled, you can use Zuora Billing to generate credit memos and debit memos when necessary. Debit an over-delivery for your customer.Write off account balances, such as reducing an invoice balance to zero due to bad debt.Credit an account without refunding payment.Correct invoice errors, such as overcharging, undercharging, and other billing mistakes.You might need to issue credit and debit memos under any of the following situations: Credit and debit memos provide a detailed justification of the amount stated on the memo. You can use the memos to adjust invoices at a line item level and provide your customers with memo documents to track billing changes.

Credit memo