Scheduled activity changed the invoice status from 'payment due' to paid without payment collection. Why?

Problem Statement

This article helps you understand scheduled activity changed the invoice status from 'payment due' to paid without payment collection. why.

Solution

Scope

Why payment due invoice marked paid via credit note due to scheduled activity?

Why an unpaid invoice is marked paid after dunning is exhausted?

What is a write-off invoice in dunning?

Summary

If you have enabled Dunning or Subscription Cancellation for unpaid invoices, once the payment retries are exhausted and if the invoice status is set to 'Write-Off' (Dunning Settings, Subscription cancellation Settings) then the invoice will be marked as paid and an adjustment credit note will be created with reason code 'Write Off'.

Solution

If the invoice's due amount was not collected, the Write Off operation can be used to close the invoice.

When this option is used,

• An Adjustment Credit Note will be created for the invoice due amount. This Credit Note will have the reason code as "Write Off" and will then be applied to the same invoice.

• The invoice's status will be marked as Paid.

  Note: When an invoice is written off, an adjustment credit note is created for the invoice value which reflects under bad debt. Once you remove the adjustment credit note, the amount will be reversed and recorded under the bad debt reversal column of the account summary report

If you prefer not to 'Write-off' the invoice, you can use other options available below:

If there are existing unpaid invoices, this option lets to choose how the invoice should be handled. You can:

• Mark the invoice as not paid,
• Void Invoice
• Write-off the invoice
• Reverse the invoice, where the invoice is marked as Paid and an adjustment Credit Note will be created with reason code Subscription_Cancellation.

Dunning Settings

Subscription Cancellation Settings

Refer to this link to know more about Dunning.

Refer to this link to know more about Subscription Cancellation.

With the help of "The line items' billing period on the invoice" settings, the service period for the line items in the credit notes will be the same as their respective billing periods on the invoice.
Navigate to Settings > Configure Chargebee > Billing LogIQ > Billing & Invoices > Set default service period for credit note line items. Please refer to this link for more information.