Early termination
Describes how early termination of a prepaid commitment affects service entitlement, refunds, billing acceleration, and charge contribution rules.
For more information about canceling a commitment, see Cancel a Commitment using the Zuora UI.
Behavior
The following behavior applies when a prepaid commitment is terminated early:
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Stops service entitlement immediately.
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There is no refund of prepaid commitment upon early termination.
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Unbilled installments are accelerated for standard early termination.
If you cancel a prepaid commitment with the No Settlement option, Zuora stops future prepaid billing for the affected commitment period instead of accelerating future prepaid billing. This behavior is supported only when the cancellation effective date is the start date of the affected active commitment period and all related prepaid billing items and contribution billing items for that period have been fully reversed.
Rules
The following rules apply when a prepaid commitment is terminated early:
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You can cancel a prepaid commitment with the No Settlement option only when the cancellation effective date is the start date of the affected active commitment period and all related prepaid billing items and contribution billing items for that period have been fully reversed.
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If these conditions are not met, No Settlement is not supported and you must settle the commitment upon termination.
Invalid contribution charges
Charge billing period based on the drawdown behavior above:
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If the date is before the cancellation date, the charge can still contribute.
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If the date is after the cancellation date, the charge cannot contribute.