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True-Ups

The ASC 606 Standard​

A periodic reconciliation billing process where a customer is charged for usage that exceeded their baseline contract commitment. It ensures the company is fully compensated for actual value delivered.

The Real-World Scenario​

A client prepaid for 500 software seats but provisioned 550; at the end of the quarter, you must bill them for the extra 50 users.

The Spreadsheet Breaking Point​

Manually comparing expected baseline commitments against actual consumption at quarter-end is labor-intensive and frequently forgotten.

The Hidden Cost to the Bottom Line​

Missed true-ups result in uncollected cash and permanently lost revenue that drops directly off the bottom line.

How GAAPX Eliminates the Risk​

Systematically tracks actual usage against contract entitlements and automatically generates true-up revenue events exactly when thresholds are crossed.