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Billing mechanics

Drawdown

Consuming a prepaid or committed balance, reducing it as usage is rated.

Drawdown is the act of consuming a balance. Each rated usage line reduces the remaining prepaid credits or commitment, and the invoice shows the reduction rather than a fresh charge.

Order matters when a customer holds several balances: promotional credits before purchased ones, expiring balances before non-expiring, and older grants before newer. Whatever the rule, it must be the same every cycle and visible on the invoice, because a customer whose credits expired in an order they did not expect will ask you to prove it.

Related terms

  • Prepaid credits A balance a customer buys up front and draws down as they consume, sometimes at a discount to pay-as-you-go.
  • Commitment A contracted minimum spend over a term, usually in exchange for a lower rate.
  • Overage Usage beyond an included allowance or commitment, charged at a separate rate.