Amortization Rules for Pay-per-Use Resources

Before June 01, 2021, pay-per-use expenditures were not amortized. Instead, they were recorded for the transaction day.

Pay-per-use expenditures generated as of June 01, 2021 are amortized based on the usage.

• If the time when a pay-per-use resource started being used (the first time expenditures were generated) and the transaction time (when the amount due was paid) are in the same billing cycle, the amortized cost is recorded for the day when it started being used.
  • Example scenario: Suppose you used a pay-per-use resource from June 10, 2021 23:00:00 to June 10, 2021 23:59:59, the transaction time was June 11, 2021 00:53:30, and the amount due was $2 USD.

    Cost amortization: As the time when expenditures were generated (June 10, 2021 23:00:00) and the transaction time (June 11, 2021 00:53:30) were in the same billing cycle, the amount due ($2 USD) was recorded as the amortized cost for June 10, 2021.

• If the time when a pay-per-use resource started being used (the first time expenditures were generated) and the transaction time (when the amount due was paid) are not in the same billing cycle, the amortized cost is recorded for the transaction day.
  • Example scenario: Suppose you used a pay-per-use resource from June 30, 2021 23:00:00 to June 30, 2021 23:59:59, the transaction time was July 01, 2021 00:53:30, and the amount due was $2 USD.

    Cost amortization: As the time when expenditures were generated (June 30, 2021 23:00:00) and the transaction time (July 01, 2021 00:53:30) were not in the same billing cycle, the amount due ($2 USD) was recorded as the amortized cost for July 01, 2021.

Pay-per-use expenditures generated as of September 01, 2024 are amortized based on the following rules:

• If the period from a pay-per-use resource started being used to the resource stopped being used (the period from the billing was started to the billing was ended) and the transaction time are in the same billing cycle, the amortized cost is recorded for the day that includes the time one second before resource expiration.
  • Example scenario: Suppose you used a pay-per-use resource from September 10, 2024 23:10:01 to September 12, 2024 00:00:00, the transaction time was September 12, 2024 00:53:30, and the amount due was $2 USD.

    Cost amortization: As the resource expired at September 12, 2024 00:00:00 and one second before the expiration was September 11, 2024 23:59:59, the amount due $2 USD was recorded as the amortized cost for September 11, 2024.

• If the period from a pay-per-use resource started being used to the resource stopped being used (the period from the billing was started to the billing was ended) and the transaction time are not in the same billing cycle, there are two cases to consider: If the transaction time is earlier than October 01, 2024 23:59:59, the amortized cost is recorded for the day that includes the time one second before resource expiration. If the transaction time is later than October 01, 2024 23:59:59, the amortized cost is recorded for the billing cycle covering the transaction time.
  • Example scenario A: Suppose you used a pay-per-use resource from September 30, 2024 23:10:01 to September 30, 2024 23:59:59, the transaction time was October 01, 2024 00:53:30, and the amount due was $2 USD.

    Cost amortization A: As the transaction time (October 01, 2024 00:53:30) is earlier than October 01, 2024 23:59:59, the amount due ($2 USD) is recorded as the amortized cost for September 30, 2024.

  • Example scenario B: Suppose you used a pay-per-use resource from September 30, 2024 23:10:01 to September 30, 2024 23:59:59, the transaction time was October 02, 2024 00:53:30, and the amount due was $2 USD.

    Cost amortization B: As the transaction time (October 02, 2024 00:53:30) is later than October 01, 2024 23:59:59, the amount due ($2 USD) is recorded as the amortized cost for October 02, 2024.

Note:

• The amortized costs of pay-per-use resources involving account adjustments will be recorded for the historical billing cycle where account adjustments occurred.
• The costs of monthly-settled CDN (billed by traffic) can be amortized by domain name.
• For pay-per-use resources settled on a monthly basis (for example, CDN billed by 95th percentile bandwidth), the amortized cost is recorded when the bills are settled. This explains why there may be a peak in the middle of a month.