Expiration
Expiration is the process where any unused prepaid balance at the end of a commitment period is reduced to zero and is no longer available for use. Expiration is a balance adjustment event, not a billing event.
Example
The following example shows the commitment balance before and after expiration.
Before expiration:
-
Prepaid Commitment: $1,200
-
Consumed: $800
-
Remaining Balance: $400
After expiration:
Prepaid Commitment: $1,200
Consumed: $800
Expired: $400
Remaining Balance: $0
When expiration is triggered
At the end of each commitment period, you can trigger expiration for the commitment period from the UI or API.
-
The remaining prepaid balance expires.
-
The balance is set to 0.
-
No further drawdown is allowed.
Key behaviors
|
Behavior |
Description |
Impact |
|---|---|---|
|
Can be triggered manually |
Supported in UI and API |
Remaining balance becomes 0 |
|
No rollover |
Unused prepaid balance is not carried forward to the next period |
Prevents cross-period usage |
|
No refund |
Expired prepaid is not returned to the customer unless contractually allowed |
Balance is forfeited |
|
No invoice generated |
Expiration is not a billing event |
No AR impact |
|
No tax impact |
Expiration does not trigger new tax events |
Tax is handled at the prepayment or service stage |
|
Only applies to remaining balance |
Expiration affects only unused prepaid |
Past usage and invoices remain unchanged |
|
Requires full billing of prepaid |
Expiration happens only after all contribution charges are billed |
Ensures the balance reflects the full commitment |
|
Stops future contribution |
Once expired, no further drawdown is allowed |
Enforces the commitment boundary |