The Microsoft EA true up. A one way count.

A Microsoft EA true up is the annual reconciliation where you report and pay for licenses added above your baseline, and because the standard process only adds and never removes, the real control happens in the year before the count, not on the day.

This guide is for IT and procurement leaders running an EA true up in 2026. Read it with the Enterprise Agreement guide and the EA renewal playbook so the annual count and the renewal stay aligned.

What is the EA true up and why does it exist?

An Enterprise Agreement lets you deploy now and reconcile later. The true up is that reconciliation, run once a year so Microsoft captures the growth in your estate.

How does the baseline work?

Your EA sets a baseline count at signing. Through the year you add users, devices, and products, and the true up reports the increase above that baseline.

• Baseline: the licensed quantity fixed at the start.
• Additions: users, devices, and products added since.
• Order: the true up order for the difference.

When is it due?

The true up falls on the EA anniversary. The order is usually submitted shortly before that date, and the final year true up also closes out the full term before renewal.

How is the true up calculated?

You count the net increase in licensed quantities and any new products, then order the difference at your agreed price level for the remaining term.

Why is it a one way count?

The standard true up adds only. You cannot drop licenses you over deployed, which is why uncontrolled growth through the year converts directly into cost.

Where are the rules defined?

The reconciliation rules sit in the Enterprise Agreement and the program terms. Microsoft documents the Enterprise Agreement program and its annual order requirements.

How do you prepare for a true up?

Preparation is a year long discipline. The count on anniversary day simply photographs whatever state your estate is in.

What should you reclaim first?

Reclaim licenses from departed staff and dormant accounts before the count. Each reclaimed seat is one you do not pay to add, and the saving compounds across the term.

1. Reclaim seats: remove leavers and dormant accounts.
2. Validate additions: confirm new licenses meet real need.
3. Reconcile early: count before the order, not after.

What to do next

1. Track deployment against entitlement across the whole year.
2. Reclaim licenses from leavers and dormant accounts before the count.
3. Validate every addition against a real business need.
4. Reconcile your numbers before submitting the true up order.
5. Plan reductions for renewal, since the true up cannot remove seats.
6. Use the true up data to inform the next renewal negotiation.

Frequently asked questions

What is a Microsoft EA true up?

An EA true up is the annual process where you report and pay for any additional licenses added during the year above your baseline. Under an Enterprise Agreement you deploy first and reconcile once a year on the agreement anniversary.

When does the Microsoft EA true up happen?

The true up is due each year on the EA anniversary, with the order typically submitted shortly before that date. The final true up of a three year term also reconciles the whole period before renewal.

How is the EA true up calculated?

You count the increase in licensed users or devices and added products since the last reconciliation, then order the difference at your agreed price level. You pay for the additions for the remaining term, not retroactively for the full year in most cases.

Can you reduce licenses at true up?

Generally no. The standard EA true up only adds licenses, it does not remove them. Reductions usually wait until renewal, which is why right sizing before you sign or renew matters more than the annual true up.

What happens if you miss an EA true up?

Missing or under reporting a true up is a compliance gap that surfaces in an audit or at renewal. Microsoft can require the back order plus the additions, so accurate annual reporting protects you from a larger reconciliation later.

How do buyers prepare for an EA true up?

Track deployment against entitlement throughout the year, reclaim unused licenses before the count, and validate the additions against actual need. The true up should reflect deliberate growth, not uncontrolled sprawl.