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Diffstat (limited to 'doc/subscriptions/quarterly_reconciliation.md')
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diff --git a/doc/subscriptions/quarterly_reconciliation.md b/doc/subscriptions/quarterly_reconciliation.md index cdac50748d0..3398902da1b 100644 --- a/doc/subscriptions/quarterly_reconciliation.md +++ b/doc/subscriptions/quarterly_reconciliation.md @@ -9,14 +9,44 @@ info: To determine the technical writer assigned to the Stage/Group associated w GitLab reviews your seat usage and sends you an invoice for any overages. This review can occur: -- **Annually**, also known as the annual true-up process. This process requires you to pay the full annual subscription fee +- **Annually**. This process is also known as **the annual true-up process**. This process requires you to pay the full annual subscription fee for users added anytime during the year. -- **Quarterly**. With this process, you only pay for the remaining period of your subscription term. +- **Quarterly**. With this process, you pay only for the remaining period of your subscription term. -## Quarterly reconciliation process +## Quarterly reconciliation vs. annual true-ups -With the quarterly reconciliation process, if you add users in the third quarter of your subscription term, for example, -you only pay 25% of what you would have paid previously. This calculation results in substantial savings. +Quarterly reconciliation can result in substantial savings. + +Let's say in January you purchased an annual license for 100 users. This chart shows your usage during the year. +The number of users went up and down, with 120 as the maximum. The dark purple indicates the most users you had each quarter. + + + +If you are being billed annually: + +- During the year, you went over the license by 20 users. +- If we pretend each extra seat is $100, then you pay $100 x 20 users. + +Annual total: **$2000** + +If you are being billed quarterly, you pay for the maximum number of seats you used during the quarter, +and for only the remaining quarters. + +Using the same example, if a seat is $100 per year, then it is $25 per quarter. + +- In Q1, you had a maximum of 110 users. 10 users over license x $25 per user x 3 quarters = **$750** + The license is now paid for 110 users. + +- In Q2, 105 users was the maximum. You did not go over 110 users, so no charge. + +- In Q3, you had 120 users. 10 users over license x $25 per user x 1 remaining quarter = **$250** + The license is now paid for 120 users. + +- In Q4, you had 120 users. You did not exceed the number of users. However, if you had, you would not be charged, because in Q4, there are no charges for exceeding the number. + +Annual total: **$1000** + +With quarterly reconciliation, you pay less annually. If it's not possible for you to participate in quarterly reconciliations, you can opt out of the process by using a contract amendment. In that case, you default to the annual review. |