What is a true-up invoice and when will you receive one?

If your order form includes a minimum contract value (MCV) and your spend with Remote falls below that amount, Remote issues a true-up invoice for the difference. This article explains what a true-up invoice is, how the amount is calculated, when it is issued, and what happens if you end your contract early.

A true-up invoice is an invoice for the gap between the minimum contract value in your order form and what you actually spent with Remote during a contract year.

When you sign an order form that includes a minimum contract value, you commit to spending at least that amount with Remote over each contract year. If your spend reaches or passes the minimum contract value, no true-up invoice is issued. If your spend falls short, Remote invoices the shortfall as a true-up fee.

Spend is measured at company level, so usage across all of your legal entities on your Remote account counts toward the commitment, including entities you add during the contract year.

Only fees paid for Remote's services count toward your actual spend. Salaries paid to Employer of Record (EOR) employees, payments to contractors, and other funds that pass through Remote do not count toward the minimum contract value.

Remote uses this calculation:

True-up amount = minimum contract value (MCV) minus your actual spend for the contract year

For example, if your minimum contract value for the contract year is 100,000 USD and your actual spend is 85,000 USD, your true-up amount is 15,000 USD.

If Remote issues a credit or a debit note that affects the spend used in the calculation, your spend is recalculated and the true-up amount is adjusted. For example, if you spent 600 USD and Remote issues an eligible credit of 200 USD, your recognized spend becomes 400 USD.

You can track your spend against your minimum contract value throughout the contract year. If you are not sure where you stand, ask your account manager for an update well before your order form year ends.

Order form contract years end on the last day of a month. Remote issues the true-up invoice on the first business day of the second month after your order form year ends, which keeps it in line with the standard monthly invoicing cycle.

For example, if your order form year ends on January 31, your true-up invoice is issued on the first business day of March.

The invoice period and the date of service on the invoice both refer to the last month of the contract year that the true-up covers.

If you end your contract before your order form year is complete and you have not met the minimum contract value, a true-up invoice is still issued. In this case, Remote issues the invoice before your order form end date rather than on the standard schedule.

A true-up invoice can also apply if you did not use any Remote products during the contract year, because the commitment in the order form applies regardless of usage.

• The true-up is billed to your default entity, which is the entity that signed the order form, even when other entities generated the spend.
• The charge appears as a single line item called Minimum Contract Value. It is not split by product.
• Any eligible credits on your account are applied automatically, in the same way as other invoice types.
• The true-up invoice is included in your standard aggregated invoice email, alongside your other invoices.
• You can view the invoice overview, the breakdown, and the invoice PDF in your Remote account under Billing → Remote Invoices.

Your order form uses the currency of your default entity, so your minimum commitment value is set in that currency.

If your entities spend in other currencies, Remote converts that spend into the order form currency using Remote list prices for each currency pair, then adds it up at company level. Remote uses list prices rather than market rates so that reaching your minimum contract value depends on the services you use and not on currency movements.

If the currency of your minimum contract value is different from your billing currency, Remote converts the true-up amount using the standard Remote exchange rate from the previous business day. This is the same rate Remote applies when converting salary amounts into your invoice currency. The exchange rate used is shown on your invoice breakdown.

Who receives a true-up invoice?

Any customer with an order form that includes a minimum contract value whose combined spend across all entities falls short of that value in a contract year.

Which entity is billed?

Your default entity, which is the entity that signed the order form.

What if I meet my minimum contract value?

No true-up invoice is issued.

Why is the charge not broken down by product?

The true-up covers a contractual shortfall against your overall commitment rather than a specific service, so it appears as one line item.

Can the amount change after the invoice is prepared?

Yes. If an eligible credit or debit note affects the spend used in the calculation, your spend is recalculated and the true-up amount is adjusted.

Where can I see how the amount was calculated?

Your invoice breakdown shows the amounts used, including any exchange rate and taxes applied. Your account manager can walk you through the figures.