gitlab-org--gitlab-foss/doc/subscriptions/quarterly_reconciliation.md

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stage: Fulfillment
group: Purchase
info: To determine the technical writer assigned to the Stage/Group associated with this page, see https://about.gitlab.com/handbook/engineering/ux/technical-writing/#assignments
---

# The quarterly subscription reconciliation process

GitLab reviews your seat usage every quarter and sends you an invoice for
any overages.

Annual reviews, also known as the [annual true-up process](self_managed/index.md#users-over-license),
require you to pay the full annual subscription fee for users added anytime during the year. With quarterly
reviews, you only pay for the remaining period of your subscription term.

For example, if you add users in the third quarter of your subscription term, you only
pay 25% of what you would have paid previously. This results in substantial savings.

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.

## Timeline for invoicing and payment

At the end of each subscription quarter, GitLab notifies you about overages.
The date you're notified about the overage is not the same as the date
you are billed.

### GitLab SaaS

Group owners receive an email **on the reconciliation date**.
The email communicates the [overage seat quantity](gitlab_com/index.md#seats-owed-example)
and expected invoice amount.

**Seven days later**, the subscription is updated to include the additional
seats, and an invoice is generated for a prorated amount. If a credit card
is on file, a payment is automatically applied. Otherwise, an invoice is
sent and subject to your terms.

### Self-managed instances

Admins receive an email **six days after the reconciliation date**.
This email communicates the [overage seat quantity](self_managed/index.md#users-over-license)
and expected invoice amount.

**Seven days later**, the subscription is updated to include the additional
seats, and an invoice is generated for a prorated amount. If a credit card
is on file, a payment is automatically applied. Otherwise, an invoice is
sent and subject to your payment terms.