Glossary
True-up
A true-up is a reconciling charge issued at the end of a contract period when a customer's actual consumption fell short of, or exceeded, what their commitment assumed.
Where a customer has committed to a minimum and consumed less, the true-up bills the shortfall. Where they consumed more than the committed volume, it settles the excess at the agreed rate.
True-up terms need to state explicitly whether unused commitment rolls over, expires, or is invoiced, because all three are common and they are not interchangeable.
Related terms