---
title: "Term Commitment"
slug: "term-commitment"
updated: 2026-07-27T12:01:54Z
published: 2026-08-10T20:17:04Z
canonical: "help.idibilling.com/term-commitment"
---

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

# Term Commitment

The Term Commitment contract term type is based on length of service. The Value and Units default to the Contract Duration and Duration Type of the Contract Specification.

> [!NOTE]
> Note
> 
> It is recommended that you DO NOT change these values; however, they can be adjusted if necessary.

If a Contract is assigned to a service, specific products can be linked to a Contract Term, but no additional services can be linked.

Selecting this type displays the configuration form.

![UG template for Help](https://cdn.us.document360.io/3f7f8ade-bcb1-4ec8-af25-0c0ad8601afb/Images/Documentation/90032(1).png?sv=2026-02-06&spr=https&st=2026-11-14T10%3A57%3A39Z&se=2026-11-14T11%3A57%3A39Z&sr=c&sp=r&sig=Db9RXoclkc6j%2FZijXW8CH1XcQwv9O1918T5bS%2BZIunk%3D)

- Configure the applicable fields.

| ID | The unique system-generated identifier of the Contract Term. |
| --- | --- |
| Type | The Contract Term Type that you selected. |
| Value | This is the number of units that the customer has agreed to maintain for the duration of the contract. |
| Units | Determines what units the number in Value represents: Years, Months, Days.. > [!NOTE] > Note > > Once the Contract Term has a Penalty defined, this field is locked to ensure that the Penalty Type/Units combination works correctly. |
| Grace Days | The Grace Days field lets you set a grace period, such that if the subscriber cancels their service within the specified grace period the Early Termination Fee and all other penalties related to the Term Commitment are waived. Grace days are counted from the day the service is provisioned. The default Grace Days is defined in the Admin Console under **Business Rules > BackOffice Settings > Billing**. If your user account has the required authority you can change the Grace Days. Zero (**0**) days means there is no grace period. |

#### Penalties

Valid Penalty Types:

- One-Time Fee
- MRC Multiplier Fee
- Prorated Fee

To add a penalty, see [Penalties](/v1/docs/penalties-1).

See also:

[Term Commitment with MRC Multiplier Fee (Example)](/v1/docs/term-commitment-with-mrc-multiplier-fee-example)