> ## Documentation Index
> Fetch the complete documentation index at: https://docs.m3ter.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Commitment Endpoints

> Endpoints that manage Commitments (also known as Prepayments) in the context of usage-based pricing and billing.

A Commitment represents an agreement where the end-customer has agreed to pay a fixed minimum amount throughout the contract period. **The commitment amount is payable regardless of the actual usage by the customer of your service or product.**

These endpoints enable the creation, updating, retrieval, and deletion of Commitments. Use them to manage your customer's Commitments and ensure optimal revenue recognition:

* Specify which type of charges can draw-down against a Commitment amount on an Account at billing: usage, minimum spend, standing charges, or recurring charges.
* Define overage surcharge percentages, which are applied when the usage charges exceed the agreed Commitment amount within the contract duration.

## What is the difference between Balances and Commitments/Prepayments?

To manage credit amounts for your end-customer Accounts, you can use Balances or Commitments/Prepayments. However, these two kinds of credits for Accounts serve different purposes.

Commitments/Prepayments are used for amounts end-customers have agreed to pay for consuming your product or services across a full contract term. A customer might pay the entire or only part of the agreed amount upfront, but ***the prepayment amount is payable regardless of the actual usage by the customer of your service or product.***

In contrast, a Balance - often referred to as a Top-Up or Prepaid draw-down - is used when a customer wants to add a credit amount to their Account at any time during the service period or when you as service provider want to add a credit to a customer Account. This Balance credit can then be drawn-down against for billing the Account for usage, minimum spend, standing charges, or recurring charges due. Balances therefore serve payment use cases in a more flexible way, for example to be used for a "Free Credit" sign-up scheme you offer to encourage sales or to enhance customer satisfaction by adding credit to an Account to compensate for service delivery issues.

You can use Prepayments/Commitments and Balances together on Account, and define at Organization or individual Account level the order in which any Balance/Prepayment credit on an Account is drawn-down - Balance amounts first or Prepayment amounts first.

## Billing for Commitments

If not all of an agreed Commitment amount is paid at the start of an end-customer contract period, you can choose one of two options for billing the outstanding fees due on the customer Account:

* Select a Product *Plan to bill with*.
* Define a *schedule of billing dates*.