Plain-English IT Glossary

Easy explanations for every term we use in audits, reports, and conversations — no jargon required.

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Tip: You can paste vendor terms directly here — we’ll translate them into plain English.

Invoice
General Billing & Contracts

A bill from a vendor for products or services in a specific period. Check dates, quantities, per-unit price, taxes/fees, and any credits. Compare to contract to spot mismatches.

MRC (Monthly Recurring Charge)
General Billing & Contracts

The repeating monthly fee for a service (e.g., 50 phone seats at $12/seat). Watch for “price creep” at renewal.

NRC (Non-Recurring Charge)
General Billing & Contracts

One-time fees like setup, installation, or change orders. Make sure they are approved and not repeated by mistake.

SKU
General Billing & Contracts

The vendor’s product code. Two SKUs can look similar but include different features — compare SKU codes when checking duplicates.

Auto-Renew
General Billing & Contracts

Contract clause that renews the term unless you cancel by a deadline. Track notice windows to avoid being locked in at higher rates.

Proration
General Billing & Contracts

Partial-period charges or credits when seats are added/removed mid-cycle. Verify dates and quantities to prevent overbilling.

Overages
General Billing & Contracts

Fees for exceeding plan limits (storage, minutes, data). If frequent, consider a higher plan or enforcement controls.

Co-term / Co-termination
General Billing & Contracts

Aligning multiple subscriptions to a single renewal date. Simplifies vendor management and negotiations.

MSA (Master Services Agreement)
General Billing & Contracts

Umbrella contract with standard legal/commercial terms. Specific work is defined in SOWs. MSAs often include liability, data handling, and renewal terms.

SOW (Statement of Work)
General Billing & Contracts

Defines scope, deliverables, timeline, and price for a project or service under the MSA.

POTS
Telecom & Connectivity

Plain Old Telephone Service (analog phone line). Often left active after migrations — easy savings by disconnecting unused lines.

Circuit
Telecom & Connectivity

A dedicated connectivity service (e.g., fiber 500/500 Mbps). Check speed, location, term, and whether a backup circuit is still needed.

DID
Telecom & Connectivity

Direct Inward Dialing number that routes directly to an extension or device. Make sure unused DIDs are removed from billing.

PRI / SIP Trunk
Telecom & Connectivity

Ways to carry voice calls over telephony or IP. SIP has per-channel costs; ensure channel counts match call volume.

QoS
Telecom & Connectivity

Quality of Service settings that prioritize voice/video over other traffic. Misconfigurations can cause call issues mistaken as provider faults.

CDR (Call Detail Record)
Telecom & Connectivity

Log of call start/end, duration, number dialed. Use it to validate usage-based charges.

Seat / License
SaaS & Cloud

Right for one user (or device) to use a product. Look for inactive users, duplicate accounts, and licenses assigned to leavers.

Tier / Edition
SaaS & Cloud

Plan level (Basic/Pro/Enterprise) with different features. Downgrade if users don’t need premium features.

Utilization
SaaS & Cloud

How much of the purchased capacity you actually use. Low utilization usually signals savings opportunities.

Reserved Instances / Savings Plans
SaaS & Cloud

Discounted cloud capacity you commit to for a term. Great for steady workloads; risky for spiky ones.

On-Demand
SaaS & Cloud

Pay-as-you-go capacity. Flexible but typically pricier than reserved over long periods.

Egress Charges
SaaS & Cloud

Fees for moving data out of a cloud/service. Surprise bills often come from large backups/exports/migrations.

Tenant (Multi-tenant)
SaaS & Cloud

Your isolated slice of a shared SaaS platform. Tenant-level settings control security and integrations.

SSO / MFA
SaaS & Cloud

Single Sign-On and Multi-Factor Authentication. Reduce risk and simplify user access across tools.

EDR (Endpoint Detection & Response)
Security & Endpoints

Security agent that detects and responds to threats on devices. Verify % of endpoints covered and alert handling.

AV (Antivirus)
Security & Endpoints

Malware scanning engine (sometimes built into EDR). Avoid paying twice for overlapping tools.

RMM (Remote Monitoring & Management)
Security & Endpoints

Tool IT uses to manage and patch devices. Overlap with EDR/MDM is common — check consolidation opportunities.

MDM (Mobile/Device Management)
Security & Endpoints

Controls settings, apps, and security on laptops/phones. Ensure all devices are enrolled and compliant.

Patch Compliance
Security & Endpoints

Percentage of devices fully updated within a timeframe. Low compliance increases risk and often support tickets.

ITSM (IT Service Management)
ITSM & Operations

The framework and tools for delivering IT services (ticketing, change, incident, etc.).

Incident
ITSM & Operations

An unplanned service interruption or reduction (e.g., email outage). Goal: restore service quickly.

Service Request
ITSM & Operations

A user asking for something standard (new account, software access). Use catalogs and automation to speed up.

Problem
ITSM & Operations

Root cause investigation behind repeat incidents. Fix the underlying issue to prevent recurrence.

Change (Standard / Normal / Emergency)
ITSM & Operations

Standard: pre-approved, low-risk (e.g., monthly patches). Normal: needs review/approval. Emergency: urgent fix with expedited approval.

CAB (Change Advisory Board)
ITSM & Operations

Group that reviews/approves Normal changes. Ensures risk is managed before deployment.

FCR (First Contact Resolution)
ITSM & Operations

% of tickets resolved in the first touch. Higher FCR = fewer handoffs and faster service.

MTTR (Mean Time To Resolve)
ITSM & Operations

Average time from ticket opened to resolved. Track by priority to spot bottlenecks.

SLA / SLA Hit Rate
ITSM & Operations

SLA: target response/resolve times. Hit rate: % of tickets meeting those targets. Compare “defined” vs “actual”.

Backlog Health
ITSM & Operations

Open tickets by age bucket (0–7 / 8–14 / 15–30 / 30+ days). Shows whether work is under control.

Ticket Touchpoints
ITSM & Operations

Number of different assignees involved in a ticket. Lower is better — reduces ping-pong and delays.

Runbook
ITSM & Operations

Step-by-step instructions for common tasks (e.g., new user setup). Enables consistency and speed.

Knowledge Base (KB)
ITSM & Operations

Articles for staff or users to self-serve. Good KBs reduce ticket volume.

CMDB
ITSM & Operations

Configuration Management Database: inventory of systems and their relationships. Useful for impact analysis in changes.

MSP (Managed Service Provider)
Vendors & Governance

A third-party that operates some or all of your IT. Compare their MSL/contract to delivered results and KPIs.

MSL (Managed Service Level)
Vendors & Governance

The MSP’s service targets (like response times). Distinct from your internal SLA to users.

KPI / Baseline / Target
Vendors & Governance

KPI measures performance. Baseline is “today’s level”; target is the goal after improvements.

Risk Register
Vendors & Governance

A log of risks with severity, likelihood, owner, and mitigation. Review monthly.

Unauthorized Add-On
Fraud & Anomalies

A feature or seat added without approval. Often appears after renewals — watch for wording like “service enhancement”.

Phantom Billing
Fraud & Anomalies

Charges for services that no longer exist (e.g., retired lines, decommissioned servers).

Duplicate Invoice / Double Billing
Fraud & Anomalies

Two invoices for the same period or ticket. Match invoice numbers and dates.

Price Creep
Fraud & Anomalies

Small increases each renewal without notice. Track your historical rates and compare at renewal.

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