[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"glossary-true-up::en":3,"gloss-cluster-true-up::en":20,"gloss-next-true-up::en":9},{"slug":4,"category":5,"name":6,"definition":7,"meta_desc":8,"faq":9,"schema_markup":9,"related":10},"true-up","saas","True-Up","A true-up is the reconciliation step in which a vendor bills a customer for what was actually consumed above what the contract paid for in advance. It is most familiar in seat-based agreements: you commit to 200 seats for the year, your headcount grows to 240, and rather than raising an invoice each time a seat is added, the vendor tallies the excess and charges for it in one settlement — annually, quarterly, or at renewal, depending on what the order form says. Usage-based and credit-based contracts use the same mechanism for consumption above a committed volume. True-ups exist because they are administratively convenient for both sides: the customer gets to add users without a purchase order every time, and the vendor gets paid for growth without renegotiating mid-term. The risk is entirely in the terms, and the terms vary more than buyers expect. Three clauses decide how painful a true-up becomes. First, the rate: excess seats may be charged at your negotiated discount or at undiscounted list price, and the difference across a year of growth is large. Second, proration: a seat added in month eleven may be billed for one month or for the full annual term regardless of when it appeared. Third, direction: nearly all true-ups are one-way, meaning you pay for seats you added but receive nothing back for seats you removed, so the count only ratchets upward. Buyers should negotiate the excess rate to match the contracted rate, insist on prorating additions from the date of provisioning, and — where the vendor will allow it — secure the right to reduce the committed count at renewal without penalty. Track your own seat count monthly rather than discovering it in the vendor's reconciliation, because a true-up invoice arrives as a fait accompli with the consumption already spent.","A true-up is the reconciliation that bills a customer for licences or usage consumed beyond what the contract prepaid, usually at renewal.",null,[11,14,17],{"slug":12,"name":13},"annual-contract-value","Annual Contract Value (ACV)",{"slug":15,"name":16},"overage","Overage",{"slug":18,"name":19},"seat-based-pricing","Seat-Based Pricing",[21,25,29,30,33,36,39,43,46,49,52,55],{"slug":22,"category":5,"name":23,"updated_at":24},"activation","Activation","2026-08-24T02:46:36+00:00",{"slug":26,"category":5,"name":27,"updated_at":28},"aha-moment","Aha Moment","2026-08-24T02:46:37+00:00",{"slug":12,"category":5,"name":13,"updated_at":28},{"slug":31,"category":5,"name":32,"updated_at":24},"api-first","API-First",{"slug":34,"category":5,"name":35,"updated_at":24},"arpa","Average Revenue Per Account (ARPA)",{"slug":37,"category":5,"name":38,"updated_at":24},"arr","Annual Recurring Revenue (ARR)",{"slug":40,"category":5,"name":41,"updated_at":42},"auto-renewal-clause","Auto-Renewal Clause","2026-08-24T02:46:38+00:00",{"slug":44,"category":5,"name":45,"updated_at":42},"build-vs-buy","Build vs. Buy",{"slug":47,"category":5,"name":48,"updated_at":28},"burn-multiple","Burn Multiple",{"slug":50,"category":5,"name":51,"updated_at":42},"burn-rate","Burn Rate",{"slug":53,"category":5,"name":54,"updated_at":24},"cac","Customer Acquisition Cost (CAC)",{"slug":56,"category":5,"name":57,"updated_at":24},"cdn","Content Delivery Network (CDN)"]