Nue Knowledge Center

Collection Scenarios - Invoicing

This document outlines the various scenarios for invoice collection when invoices are generated by Nue and subsequently transferred to the payment systems.

Transfer invoices to payment systems for payments

As a finance ops user, after an invoice is activated, either upon order activation or via billing schedules, I see that the invoices are transferred to the payment systems for payments by customers.

 

When an invoice is activated, it will be transferred to the designated payment system for payments. Nue will process the following: 

• If the invoice’s customer does not already exist in the Transaction Hub, create a new customer record in the payment system; 
• If the invoice’s product does not already exist in the Transaction Hub, create a new product record in the payment system.
• Create a Transaction Hub mapping record for the following: 
• Customer
• Product
• Invoice
• Set the payment status of the invoice to Transferred.

Implementation Guide

• Webhook: When an invoice is activated, an invoice.activated Webhook event is raised with the payload containing the invoice and invoice items.
• Error Handling: When the invoice fails to be transferred to the payment system, 
• Set the Invoice’s Payment Status to Transfer Error: TransferError
• Set the Transaction Hub’s Status to Failed: Failed, and with Error Code and Error Message stating the failure reason.

Transfer credit memos to payment systems

As a finance ops user, after a credit memo or a negative invoice is created and activated in Nue, either from a newly activated change order, or created manually, I can see that the credit memo or negative invoice is transferred to the payment system as credits, which may be used for future payments.  

 

In Nue, a credit memo can be created from the billing process.  

 

In some customer’s instance, Credit Memos are not enabled. In this case, invoices with negative amounts will be created by the billing process in replacement of credit memos.  

 

We refer to both credit memos or negative invoices as “credit memo” throughout this document.  

 

When a credit memo is activated, it will be transferred to the designated payment system either as credits / credit notes, or credit memos.  Nue will process the following: 

• If the invoice’s customer does not already exist in the Transaction Hub, create a new customer record in the payment system; 
• If the invoice’s product does not already exist in the Transaction Hub, create a new product record in the payment system.
• Create a Transaction Hub with mapping record for the following transaction types: 
• Customer
• Product
• CreditMemo
• Set the payment status of the credit memo to Transferred.

Implementation Guide

• Webhook: When a credit memo is activated, a credit_memo.activated Webhook event is raised with the payload containing the credit memo and credit memo items.
• Error Handling: When the credit memo fails to be transferred to the payment system, 
• Set the credit memo’s Payment Status to Transfer Error: TransferError
• Set the Transaction Hub’s Status to Failed: Failed, and with Error Code and Error Message stating the failure reason.

Issue debit memos over invoices and transfer debit memos to payment systems

As a finance ops user, I can issue a debit memo for additional charges (e.g., Late Fees) over existing invoices, and see that the debit memo is transferred to the payment system for payments by customers.

 

In Nue, a user can create a debit memo associated with an active invoice. 

 

In most financial and ERP systems, debit memos (or debit notes) are typically associated with specific invoices.  In some systems,  users can create standalone debit memos. 

 

When a debit memo is activated, the debit memo is transferred to the designated external system (currently Stripe only) for payment processing.  Nue will process the following: 

• If the debit memo is associated with an invoice: 
• If the associated invoice does not exist in the Transaction Hub, transfer the invoice first; 
• Create a debit memo in the payment system associated with the mirrored invoice.  
• Otherwise, create a debit memo in the payment system.  
• Create a Transaction Hub mapping record for the transaction type DebitMemo. 

In some payment systems (e.g., Stripe), there are no debit memo or debit notes concepts.  In such cases, when transferring a debit memo associated with an invoice, we suggest canceling the original invoice in the payment system, and create a new invoice.  The new invoice contains the invoice items from the canceled invoice, as well as the debit memo item of the debit memo.

Have an option not to send $0 invoices to payment systems

As a finance ops user, I have an option not to transfer $0 invoices to payment systems.

In Nue, when the setting “Do not send invoices to payment systems with $0 total amount” is enabled, invoices with $0 amount will not be transferred to the designated payment systems.  When $0 invoices are activated, invoice.activated events will not be raised.

Do not send catch-up invoices to payment systems

As a RevOps admin user, I do not want to send catch-up invoices generated during the onboarding process to payment systems.

 

Catchup billing run is a process that reconciles outstanding charges by calculating and generating invoices for previously unbilled services or products. The catch-up bill run will mark invoices that were already processed through other systems as ‘Catch Up’. Typically, these invoices should not be transferred to external payment systems.