Glossary
Billing true-up
A later invoice that corrects an earlier one, and only when the contract allows it.
A true-up is a contractual permission to reconcile. It might appear when an index was not yet published at the invoice date, so the clause tells the parties to estimate and then correct. That is different from noticing, a year later, that nobody applied a 3% escalator.
If the clause contains a true-up, follow its window. Index publication lag is a good reason for a short true-up. It is not a reason to reopen a closed contract year the clause does not reopen.
The mechanics are ordinary: compute the correct price, subtract what was billed, and invoice the difference as its own described line, with the clause cited. Folding it silently into next month's fee makes the dispute worse.
Where no true-up exists, the clean operation is prospective. Change the template. Notice the customer. Check a later invoice to prove the new rate posted. That last check is part of the work, because templates do not always save.
Related terms
See it used in a worked example · CPI calculator · Request an audit
Sources and limits
Index levels from the U.S. Bureau of Labor Statistics Consumer Price Index, not seasonally adjusted, retrieved through the BLS Public Data API on November 1, 2026. Values are index points, not the headline 12-month percent.
Statewide rates reflect U.S. Department of Labor state minimum-wage postings as updated January 1, 2026, the U.S. Department of State Diplomatic Note on 2026 increases, and, for the prior-year comparison and named local rates, the National Employment Law Project compilation published in November 2025. Confirm the rate that applies to the workplace before using it in a bill.
The contracts in these worksheets are fictional. The prices are chosen so the arithmetic is easy to check. They are not a price survey and they are not client results.
RateClause is not a law firm. Nothing on this page is legal advice. Your clause controls, including whether a past period can be rebilled at all.
Primary postings: BLS Consumer Price Index, U.S. Department of Labor, state minimum wages, U.S. Department of State notice of 2026 minimum-wage increases.