What is a Microsoft EA true up?

The true up is the annual reconciliation of license count under a Microsoft Enterprise Agreement. The customer files within 30 days of the anniversary date. The filing reports any net new licenses provisioned during the year. Microsoft bills the gap at the original EA discount rate, not at list price.

Can a true up reduce license count?

No. The true up only goes up. License reductions wait for the renewal anniversary and require explicit contract language. A license added in month two and removed in month nine still counts in the true up. The customer must run a deprovisioning sweep before the anniversary to limit the true up bill.

How is the true up priced?

The true up is billed at the original EA discount rate. The customer keeps the discount band on the gap. The price runs from the anniversary date forward, not retroactive. The standard EA discount applies unless the customer renegotiates the rate during the true up window.

Is the true up negotiable?

Yes. The math feels fixed but the filing is a negotiation. Customers who run a structured filing typically land the true up 8 to 22 percent below the initial Microsoft quote. The leverage runs across quantity scrub, SKU downgrade, MCA E migration, co terming with renewal, and add on bundling.

What is the difference between true up and bridge true up?

The annual true up runs at every EA anniversary. The bridge true up runs mid term for major changes such as a large acquisition or divestiture. Bridge true ups are by negotiation and rare. The renewal true up is the final true up at the EA term end and combines with the renewal quote.

How does Azure fit in the true up?

Azure follows a different model from the seat based products. The EA Azure commitment runs as a prepaid envelope. Consumption above the commitment is billed at pay as you go plus EA discount. Azure reservations and savings plans should be re scored at every true up cycle, not just at renewal.

White Paper · Microsoft

Turn the Microsoft true up into a negotiation

The Microsoft EA true up reads like an audit. It is also the buyer side window to negotiate. The math, the timing, the leverage points, and the framework procurement teams use to turn the.

Format PDF + HTML

Read Time 20 Minutes

Last Updated September 25, 2025

What you will take away

The true up runs annually within 30 days of the anniversary. Late filings carry penalty pricing.
Net new licenses are billed at the EA discount rate. The customer keeps the discount band on the gap.
The customer cannot reduce license count via true up. Reductions wait for the renewal anniversary.
True up is the second largest spend line after renewal. Most large EAs file 8 to 25 percent above original baseline.
The filing date is negotiable. Strategic accounts can shift the anniversary by up to 90 days.

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