Business Central Billing

Question

Hi, I have a business central provided my a Microsoft reseller, how do I know they are paying our cloud services and the business central licences. They refused to send us evidence of how they are paying, saying they are paying in large volume with other businesses per month. Is that possible?

Answer 1

@Brynes Mbogo Greetings!

Microsoft resellers typically operate through a channel partnership model, where they act as intermediaries between Microsoft and the end customers, providing Microsoft products and services, as well as additional value-added services. These resellers can be involved in billing customers in a few different ways, depending on the specific agreement and the programs they participate in. Here’s how resellers generally handle customer billing:

1. Direct Billing to Customers (Reseller Invoices the Customer)

In this model, the reseller is responsible for invoicing the customer directly for the Microsoft products and services they have sold. This means:

• Pricing Model: The reseller purchases Microsoft products or services at a discounted rate (from Microsoft or through a distributor), then marks up the price to sell to the end customer, adding their margin.
• Billing Process: Resellers create and send invoices to customers for the total amount owed based on the products or services delivered.
• Payment Collection: The reseller collects payment from the customer based on the terms they’ve established (e.g., monthly, annually).
• Payment Methods: Resellers usually accept a variety of payment methods, including credit cards, bank transfers, or checks, depending on the customer's preference.

2. Microsoft’s CSP (Cloud Solution Provider) Program

Through Microsoft’s Cloud Solution Provider (CSP) program, resellers (also called "partners") provide Azure, Microsoft 365, and other cloud services. There are two main billing models under CSP:

1. Direct CSP Reseller

• Billing Process: A Direct CSP reseller has a direct relationship with Microsoft and handles the entire billing process themselves. They purchase services from Microsoft at wholesale prices and then resell them to customers at retail prices.
• Invoice Handling: The reseller is responsible for generating invoices to customers and collecting payments, which includes handling billing inquiries, payment disputes, and adjustments.
• Flexibility: Direct CSP resellers often have the ability to customize invoicing to meet customer needs (e.g., different billing cycles, package bundles, or even offering discounts).

2. Indirect CSP Reseller (Via Distributor)

• Billing Process: An Indirect CSP reseller works with an authorized Microsoft distributor (also known as an Indirect Provider) who provides the billing services. The reseller can focus on selling and supporting customers, while the distributor handles the invoicing and payments.
• Invoice Handling: The distributor sends the invoices to the customer on behalf of the reseller, and the reseller typically receives a commission or margin on the sales they make.
• Payment Flow: The reseller pays the distributor for the services sold at a wholesale rate, and the distributor manages the financial relationship with Microsoft. The reseller then pays the distributor and receives payments from customers, making this model less complex for the reseller.

3. Managed Services Provider (MSP) Billing

Some resellers act as Managed Services Providers (MSPs), offering Microsoft products and services bundled with their own managed services (e.g., IT support, cloud migration, system integration, etc.). These MSPs may handle billing in the following ways:

• Bundled Invoices: The MSP bundles Microsoft licenses (like Microsoft 365) with their own services and invoices the customer for the entire package. This gives the customer a single, unified bill.
• Recurring Billing: For customers using recurring services like cloud subscriptions, MSPs often set up recurring billing cycles, where they charge the customer on a monthly or annual basis.
• Payment Handling: MSPs typically offer multiple payment methods, such as direct bank transfers, credit card payments, or automated payments.

4. Microsoft Partner Center (For CSPs)

For CSPs, the Microsoft Partner Center is the main tool for managing customer subscriptions, billing, and payments. It allows resellers to:

• Create Customer Subscriptions: Resellers can create and manage customer subscriptions for services like Azure and Microsoft 365.
• Track Billing and Payments: The Partner Center enables resellers to track their customer’s usage and generate invoices for the services provided.
• Collect Payments: The platform can integrate with payment processors to facilitate payments directly from customers, or resellers can handle payments offline depending on their preferred setup.

In general, the billing model used by Microsoft resellers varies based on the reseller’s role (Direct or Indirect CSP, MSP), the services provided, and the agreements with customers.

Hope this answers your question. Please write back to us if you have any questions.

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