Policies and Procedures

Standard Operating Procedure (SOP) for Zuora Billing

Policies and Procedures
January 23, 2022
5 Min
Chris Farmer

Zuora is a cloud-based software that helps companies manage subscription billing, commerce, and finance operations. This SOP will help ensure accuracy, efficiency, and compliance with financial standards and regulations.

Standard Operating Procedure (SOP) for Zuora Billing

1. Purpose

To define the steps required for managing and executing the billing processes using the Zuora platform, ensuring accurate, timely, and compliant billing operations.

2. Scope

This procedure applies to all personnel involved in the billing cycle, including sales, finance, and customer support teams, within an organization using Zuora for subscription management and billing.

3. Responsibilities

  • Finance Team: Ensures accurate invoice generation, payment processing, and revenue recognition.
  • Sales Team: Provides accurate customer subscription information and promptly communicates any changes.
  • Customer Support Team: Handles billing inquiries and disputes.
  • IT Support Team: Manages Zuora system configuration, maintenance, and user access controls.

4. Definitions

  • Zuora: A cloud-based subscription management platform used for automating billing processes.
  • Billing Cycle: The interval of time from one billing record to the next.
  • Subscription: An agreement to purchase products or services periodically.

5. Procedure

5.1 Customer and Subscription Setup
  1. Customer Account Creation: Create a customer account in Zuora for each new customer, including all relevant details such as billing address, payment method, and contact information.
  2. Subscription Setup: Configure subscriptions based on customer agreements, including pricing, billing frequency, and any discounts or promotions.
5.2 Billing Schedule and Invoicing
  1. Billing Schedule Review: Regularly review and confirm the billing schedule for each subscription to ensure accuracy.
  2. Invoice Generation: Automatically generate invoices based on the billing schedule. Review invoices for accuracy before they are sent to customers.
  3. Invoice Distribution: Send invoices to customers via their preferred method (email, postal mail, etc.).
5.3 Payment Processing
  1. Payment Collection: Process payments using the customer's preferred payment method. This may involve credit cards, bank transfers, or other payment gateways.
  2. Payment Application: Apply payments to the appropriate customer invoice in Zuora, ensuring accurate accounting of receivables.
  3. Failed Payments: Handle failed payments according to company policy, which may include notification to the customer, retrying the payment, or suspending services.
5.4 Customer Support and Dispute Resolution
  1. Billing Inquiries: Provide timely responses to customer billing inquiries.
  2. Dispute Management: Investigate and resolve billing disputes promptly. Adjustments or credits should be documented and processed in Zuora.
5.5 Reporting and Analysis
  1. Financial Reporting: Generate financial reports from Zuora, including revenue, receivables, and cash flow reports.
  2. Analysis and Review: Conduct regular reviews of billing operations to identify trends, inefficiencies, and opportunities for improvement.

6. Documentation and Records Management

Maintain accurate and comprehensive records of all billing operations, including customer agreements, invoices, payments, and communications. Ensure compliance with data protection and privacy laws.

7. Training

Provide ongoing training to all personnel involved in the billing process to ensure they are proficient in using Zuora and understand the company’s billing policies and procedures.

8. Review and Continuous Improvement

Regularly review the billing process and procedures to identify opportunities for improvement. Update the SOP as necessary to reflect changes in business practices, Zuora updates, or regulatory requirements.

This SOP provides a framework for managing Zuora billing operations. Specific details may need to be adapted to fit the unique needs and circumstances of different organizations.