Handle overage credits when customers accept on-demand terms

Problem

When overage cutoffs are disabled, customers can accumulate usage beyond their subscription limits. If they accept on-demand terms after already incurring overage, there's a gap in how we handle the accumulated overage credits.

Currently:

  • Customers who haven't accepted overage terms can still use resources (overage cutoffs not working)
  • On-demand amounts accumulate against their subscription but won't be submitted/billed until they accept terms
  • If they accept terms mid-month (e.g., day 31), they get billed for all usage up to that point
  • This creates a grey area legally since overage cutoffs weren't functioning correctly to prevent this usage

Questions to resolve

  1. Should we reset the overage wallet when customers accept on-demand terms?
  2. If yes, how should we handle customers who already have overage accumulated?
  3. What's the impact on customer dashboards if overage suddenly becomes 0 after accepting terms?
  4. Should this be handled via a rake task or automated process?
  5. What's the timing consideration relative to the billing period reset?

Considerations

  • Monthly billing period resets removes previous months on-demand charges
  • On-demand charges are only submitted if terms are accepted, usage sku is present, and overage billing is allowed
  • Mid-month resets would require custom handling (adding credits to overage wallet)
    • Is there an audit concern here? How do we account for this added "credit" as it isn't against any SKU
  • Need to ensure we're covered legally given the T&C and the cutoffs functionality not working as intended
  • Customer communication/UX impact of overage changes in dashboards

Next steps

  • Clarify the desired behavior with stakeholders
  • Determine if reset should happen automatically or via manual process
  • Define the implementation approach
Edited by Suraj Tripathi