Plain-English meaning
A contractual or billing adjustment that reconciles actual quantities or use with the amount previously purchased or reported.
Why it matters in a software decision
Growth between billing checkpoints can create a concentrated charge and may affect discount or renewal negotiations.
Where you may see it
Enterprise agreements, order forms, audit clauses, usage reports, and renewal quotes.
What to verify
- Measurement date and data source
- Included growth or thresholds
- Unit price and discount treatment
- Whether reductions receive credit
Do not confuse it with
A true-up reconciles past or current use; a forecast estimates future demand. Some agreements provide only upward adjustment.
Procurement example
Reconcile the vendor report against internal ownership and access data before approving an adjustment.
This glossary explains procurement usage in plain English. Contract, privacy, security, accounting, and regulatory conclusions require context-specific review.