Understand billing credits

Billing credits are unused value from money the workspace already paid. They can appear when a paid subscription change leaves value that should be used against later invoices. You do not buy billing credits, and they are not cash, AI credits, coupons, or reward points.

When billing credits can appear

Billing may create a credit when an invoice preview shows unused paid value after a change, including:

• Moving to a lower-priced plan or changing the billing interval during a paid period.
• Reducing paid licenses after the billable member count goes down.
• Removing or lowering a recurring storage add-on.
• Correcting an invoice when the correction is issued as account credit instead of a cash refund.

Not every downgrade creates a credit. The result depends on the plan, timing, licenses, add-ons, discounts, open invoices, contract, and the amount shown in the invoice preview. Review the preview before confirming the change.

Plans, licenses, and storage follow the same pattern

The same proration principle applies when a workspace changes its plan, billable workspace members, paid licenses, or recurring storage. What changes is whether the workspace is adding paid capacity or removing it.

For example, suppose two $10 monthly licenses are added halfway through the month. The preview may show a $10 prorated charge for the two half-month licenses. If the workspace already has $6 in billing credit, ALLO applies the credit and charges $4 to the payment method.

If those same two licenses are removed halfway through an eligible period, the preview may instead create $10 in billing credit for the unused half month. The next invoice for that workspace uses the credit automatically.

Recurring storage works the same way. Adding a $20 monthly storage tier halfway through the month may create a $10 prorated charge. Removing that tier halfway through an eligible period may create $10 in billing credit. The exact amount always comes from the invoice preview.

How the credit is used

After a change creates billing credit:

1. The credit stays with the workspace.
2. The next invoice for the workspace uses the credit automatically.
3. If the credit covers the whole invoice, the payment method is not charged for that invoice.
4. If the credit is smaller than the invoice, the payment method is charged only for the remaining amount.
5. If the credit is larger than the invoice, the unused amount remains for later invoices for the workspace.

Billing credit cannot be moved to another workspace or converted into AI credits.

Example: switch from annual to monthly billing

Suppose the preview for an annual-to-monthly change shows:

If the later monthly invoice remains $16.99 and there are no taxes, add-ons, discounts, license changes, or other adjustments, the credit works like this:

Example: the credit is smaller than the next invoice

Suppose a license reduction creates $12.00 in billing credit and the next invoice is $16.99. ALLO applies the $12.00 automatically, then charges $4.99 to the payment method. The credit balance becomes $0.00.

Example: the credit is larger than the next invoice

Suppose a recurring storage change creates $45.00 in billing credit and the next invoice is $30.00. ALLO applies $30.00, charges $0.00 to the payment method, and keeps the remaining $15.00 for a later invoice for the workspace.

When billing credits are useful

Billing credits protect unused paid value when a workspace reduces an eligible recurring subscription during a paid period. They are useful when a team moves from annual to monthly billing, reduces licenses after the team gets smaller, or lowers recurring storage while continuing to use ALLO.

They are not a balance that you need to optimize or spend manually. Keeping a more expensive subscription only to “save” the credit does not help, because eligible invoices use it automatically.

Cancellation, restarting, and expiration

Canceling a subscription does not turn billing credit into a cash refund, and cancellation itself does not spend the credit. If the same workspace later starts a paid subscription again, the remaining credit applies to the next invoice.

Contact support before assuming that credit can be reused when the workspace or contract will change.

What billing credits cannot do

Billing credits cannot:

• Be withdrawn as cash or automatically returned to the card.
• Pay for AI usage as AI credits.
• Move to another workspace.
• Be reserved for a particular invoice or applied on a date you choose.

For refund eligibility, see Refunds and duplicate charges. For the calculation behind plan, license, and storage changes, see Fair billing and proration.

Check a credit before and after a change

Before confirming a subscription change, review the invoice preview for the unused-time credit, new charge, tax, discount, license quantity, add-ons, and final amount.

After the change, the next invoice or receipt can show a Credits applied line when credit was used. The full remaining balance might not appear on every Billing screen. If you need the current balance confirmed, contact support with the workspace name, invoice number, credit amount, and the plan change you made. Never send a full card number.