Cost and billing
Spend limit
What is spend limit?
A spend limit is a ceiling on what an account may consume over a period. It is only meaningful if it is enforced before work starts; a limit checked after the fact is a notification, not a limit.
It should account for open reservations as well as settled spend. Otherwise several jobs authorised at once can each pass the check individually and collectively exceed the ceiling.
Being blocked by your own limit is the system working. The alternative — discovering the overrun on an invoice — is the failure mode limits exist to prevent.
Related terms
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