True-up billing
True-up billing is a reconciliation process that adjusts the amount owed based on actual usage or seat count versus what was initially contracted.
True-up billing reconciles the difference between what a customer was originally charged and what they actually consumed over a period. It is common in enterprise contracts where usage is estimated upfront and settled at the end of a term.
Example: A company contracts for 50 seats but uses 65 over the year. At renewal, a true-up invoice is issued for the additional 15 seats used throughout the contract period.
