Payout schedules and processes

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Appropriate roles: Account admin | Global admin

The following payment schedules and processes are the same for marketplace purchases of public plans, private plans, and private offers including multiparty private offers. This article describes:

  • Microsoft's payment schedule
  • Where to find the status of a payout
  • The process for customer nonpayment

Payment schedules

The following sections describe the payouts process for transactions when a customer has:

Transactions when a customer has an Enterprise Agreement

When a customer purchases a product from the Microsoft commercial marketplace or Azure Marketplace using their existing Microsoft Enterprise Agreement for transactions, Microsoft issues payouts in the next payout cycle. Payouts are based on usage or subscription purchase per the following table.

Payouts often occur before Microsoft collects payment from a customer. For the actions we take if a customer fails to pay Microsoft but we've already issued a payout, see the Process for customer nonpayment.

This table shows Enterprise Agreement transactions (usage).

Event Description Reporting Visibility Timing
Usage Customer uses a service. Usage dashboard Month 1
Microsoft calculates billing amount Determine total usage over previous month period.† Usage dashboard Month 2
Transaction reported Determine agency fee and payout earnings. Marked Unprocessed paymentStatus in the Earnings report Month 2
Prepare payout Earnings are prepared for monthly payment. Marked Upcoming paymentStatus in the Earnings report Month 3 (First week)
Payout sent Payment is sent to publisher. Marked Sent paymentStatus in the Earnings report Month 3 (no later than the 15th)
Invoice paid by customer Microsoft collects payment from customer. No change Months 3 through 12

† Usage date in reporting shows as beginning of the month in which the usage occurred (for example, 10/1 for usage that occurred anytime in October). The payout date is in Pacific Standard Time (PST).

Diagram of the timeline of payments for Enterprise Agreement customers.

This table shows Enterprise Agreement transactions for orders or subscriptions.

Event Description Reporting Visibility Timing
Month of transaction Customer buys a service Order dashboard Month 1
Transaction reported Determine store service fee and calculate earnings Marked Unprocessed paymentStatus in the Earnings report Month 1
Prepare payout Earnings are prepared for monthly payment Marked Upcoming paymentStatus in the Earnings report Month 2 (First week)
Payout sent Payment is sent to publisher Marked Sent paymentStatus in the Earnings report Month 2 (no later than the 15th)
Invoice paid by customer Microsoft collects payment from customer No change Month 3 through 12

Diagram of the timeline of payments for Enterprise Agreement customers with orders or subscriptions.

Transactions when customer has a Microsoft Customer Agreement or Cloud Solution Provider

When a customer purchases a product from the Microsoft commercial marketplace or Azure Marketplace using a Cloud Solution Provider (CSP) or the Microsoft Customer Agreement (MCA), we issue payouts cycle based on usage or subscription purchase per the following tables.

Transactions become eligible for payment once Microsoft has collected payment from the customer.

This table shows the process for MCA, CSP, and usage.

Event Description Reporting Visibility Timing
Usage Customer uses a service Usage dashboard Month 1
Microsoft calculates billing amount Determine total usage over previous month period* Usage dashboard Month 2
Invoice sent to Customer Microsoft sends invoice to customer Revenue dashboard Month 2
Invoice paid by customer Microsoft collects payment from customer Usage dashboard Month 3
Transaction reported Determine store service fee and payout earnings Marked Unprocessed paymentStatus in the Earnings report Month 3
Prepare payout Earnings are prepared for monthly payment Marked Upcoming paymentStatus in the Earnings report Month 4 (First week)* - +1 month for credit card
Payout sent Payment is sent to publisher Marked Sent paymentStatus in the Earnings report Month 4 (no later than the 15th)* - +1 month for credit card

* Usage date in reporting shows as beginning of the month in which the usage occurred (that is, 10/1 for usage that occurred anytime in October). The payout date is in Pacific Standard Time (PST).

Diagram of payments for Enterprise Agreement customers.

This table shows the process for MCA, CSP, and orders or subscriptions.

Event Description Reporting Visibility Timing
Month of transaction Customer buys a service Order dashboard Month 1
Invoice sent to Customer Microsoft sends invoice to customer Revenue dashboard Month 2
Invoice paid by customer Microsoft collects payment from customer Order dashboard Month 3
Transaction reported Determine store service fee and payout earnings Marked Unprocessed paymentStatus in the Earnings report Month 3
Prepare payout Earnings are prepared for monthly payment Marked Upcoming paymentStatus in the Earnings report Month 4 (First week): +1 month for credit card
Payout sent Payment is sent to publisher Marked Sent paymentStatus in the Earnings report Month 4 (no later than the 15th): +1 month for credit card

Diagram of the timeline of payments for orders or subscriptions.

Process for customer nonpayment

On rare occasions, Microsoft can't collect payments from customers for their commercial marketplace purchases. When a customer fails to pay Microsoft according to their billing schedule, we begin the collections process. This process takes approximately four months and involves persistent communication from Microsoft. If payment isn't received by the end of this process, Microsoft writes off the funds as non-collectable.

Per the payout process articulated here, Microsoft might have already paid out funds that are ultimately non-collectable to publishers (you). Therefore, we have a process for reconciling these amounts.

Microsoft recoups any payouts already paid to you using one of the following methods:

  • Microsoft might subtract the unpaid amounts from future payouts. For example, if USD1,000 in payouts are deemed non-collectable and written off, your future payouts are withheld until the USD1,000 is recovered.
  • Microsoft might request a refund, or invoice publishers for any uncollected amounts.

The following schedule is an example:

Event Approximate date* Partner visibility
Example payout date 10/15/2020 Marked Sent paymentStatus in the Earnings report
If customer does not pay Microsoft 12/2/2020 – 12/5/2020 No change, same as above
Customer receives first late payment email 12/6/2020 None
Customer receives regular emails of increasing urgency 12/7/2020 – 1/31/2021 None
Publisher is notified write-off is likely 1/7/2021 -
Customer receives termination notice 2/1/2021 None
Collection process ends / funds are written off 2/15/2021 Email notification sent to publisher that funds have been written off.
Payout is deducted 3/1/2021 Publisher sees negative transaction paymentStatus in the Earnings report.
Payout is withheld 3/15/2021 Future payouts are shown in paymentStatus in the Earnings report. Publisher won't receive payment until balance is no longer negative.

* The payout date is in Pacific Standard Time (PST).

Time required for payments to reach a payout account

We typically send payments due by the 15th day of the month, but more time is required for the payment to reach your account. The time required depends on the payment method we use for your account, as described in the following table.

Note

The intervals in the table are approximate. Payments might take more or less time to reach your account.

Payment method Number of days to reach payout account
PayPal One business day
ACH/SEPA 2 to 3 business days
Wire transfer 7 to 10 business days

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