Let’s say a customer has subscribed to a 12 month plan. They are due to pay every year on the 3rd March. It has been a year since they signed up so they are sent an invoice for $200 to renew.

If on the 6th March the customer decides to change to monthly billing and pay $20 per month before paying the due invoice, Zoho seems to handle it in a strange way.

Here’s what happens:

- Zoho creates an invoice of $20
- Zoho credits the customer $200 
- Zoho applies the credit to the $20 invoice
- There is $180 credit remaining
- The invoice for $200 is left as is

I do not see the logic in why Zoho credits $200 when the customer has not paid a cent?

Also, in a SaaS model, doesn’t this logic seem strange in general? Should it just mark the $200 invoice void and create a new invoice for the 3rd March for $20?