Prepaid asset: committed but unconsumed compute
A prepaid asset is committed compute or credits you have paid for but not yet consumed. It sits on the balance sheet as prepaid compute and unwinds to the P&L, to a capitalized asset, or to cost of revenue as consumption actually occurs ASU 2018-15. It is distinct from a capitalized intangible: a prepaid is a right to future service, not a built asset.
When compute is a prepaid
The trigger is paying ahead of consuming. Reserved GPU commitments, prepaid inference credits and prepaid committed-use plans all set up a prepaid asset at inception, because you hold a right to future capacity rather than having used anything.
How it unwinds
Each period, release the consumed portion to the line the consumption belongs to: expense, cost of revenue, or a capitalized asset for capacity used in an internal-use build. The balance should always equal the unconsumed commitment.
Instruments and mechanics that land here
Primary sources
Ledger current as of 2026-07-24. A position and a citation, not accounting advice. See how we cite.