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Credit grants are prepaid balances that customers hold against future consumption: committed spend, prepaid usage, or goodwill credits. A credit grant carries revenue that has already been recognized when the grant was issued. Consuming the grant against a subsequent invoice draws down that balance rather than recognizing new revenue. When a grant settles part or all of an invoice line item, Sequence recognizes only the net amount (gross minus grant) on the line’s normal recognition schedule. The grant’s drawdown does not appear a second time as new revenue.
Drawdown only applies to credit grants. A flat line item on a billing schedule is not a grant: usage events will not deduct from it, and it recognizes normally.
Each grant has an underlying transaction history. Debit entries are consumption, credit entries are reversals (for example, an unused portion being credited back).

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When credit grants apply

Credit grants are designed for prepaid then draw down patterns. A customer prepays a balance upfront and draws it down as they consume. The prepaid amount is recognized at the point of sale (or over the service period). Subsequent invoices that consume the grant do not double-count revenue.