Extended Period Term

OLS Lifecycle

OLS expiration timeline

The following is a typical deprovision scenario timeline for an OLS customer:

• Active:
  An active Volume Licensing (VL) subscription can go into grace status for two reasons. First, the agreement might still be active, but the order coverage period expires. Alternatively, the agreement itself may expire. In either case, the commerce portal will move the subscription from active to grace status.
• Grace period:
  Customers can continue using the service. However, they get a message indicating that they’re out of compliance and must take corrective steps to renew the licenses so that they don’t risk losing service. When the preset grace period (typically 90 days but might vary between offers) expires, the commerce portal moves the seats from grace to disabled. (This happens automatically; there’s no payload from VL.)
• Disabled:
  Customers are unable to use the service (such as accessing mailboxes and SharePoint sites) according to what they purchase. When the preset disabled period  (typically 90 days but might vary between offers) expires, the commerce portal moves the seats from disabled to deprovisioned.
• Deprovisioned:
  User data is deleted. For more information, read: What happens to my data and access when my subscription ends? Lifecycle functionality:

EPT Service

What's EPT?

• EPT is a feature available to all Enterprise and Enterprise Subscription customers. If a customer’s enrollment expires and isn't renewed, their existing EPT-enabled Online Services automatically continues on a month-to-month basis. Customers are billed monthly at the current published price for the enrolled affiliate’s price level, plus a 3 percent administrative fee for up to one year. Pricing is reset to level A for each new year, plus a 3 percent administrative fee.
• The EPT functionality is in place to avoid users’ loss of service due to late renewal. It allows customers to use their existing EPT-enabled OLS outside of their agreement term, for example, while they’re in the process of renewing or signing a new agreement.
• The extended term monthly billing purchase order (PO) is marked with "EXT" in the PO sequence number (for example, EXT_6165739_A5BA8F4C). All services provided under EPT are billed as they're provided, even if not consumed.

Notes:

• All corporate customers are opted in to EPT by default.
• All government customers are opted out of EPT by default, except for Server and Cloud Enrollment (SCE) where all entities are opted in by default.
• The EPT service only applies to EPT-enabled OLS.

EPT data lifecycle

Note: No new licenses or reservations can be added to an expired enrollment. The admin can manage existing licenses, but they can’t add any (increase the number of) users until the enrollment is renewed.

Why do I need to know this?

If a renewal isn't processed on time, EPT is invoiced monthly. The same applies if you don't submit an Online Services Extended Term Option Form (OLSET) before the enrollment end date. This ensures that the services continue without interruption. EPT invoices might be credited when a renewal is submitted late, depending on when the renewal is submitted after the enrollment expiration date. EPT credits are considered when the customer renews into another Enterprise enrollment, not across programs.  

Renewal submitted less than 30 days after enrollment expiration

• OLS licenses on the renewal channel price sheet (CPS) can be backdated to the first of the processing month, which will align to the day after the previous enrollment expiration.
• If an EPT invoice is generated for that same month, it's credited in full. Renewal submitted more than 30 days after enrollment expiration
• OLS licenses on the renewal CPS can be backdated to the first of the processing month.
• If an EPT invoice has already generated for that same month, it's credited in full.
• EPT invoices before the month of processing aren't credited.

Which services are eligible for EPT? Refer to the OLS product offerings available in the product terms to determine if a service is eligible for EPT.

The product conditions might show a service as EPT eligible, but eligibility will also depend on how the customer acquired the service because not all services enable EPT, such as step-ups.

Services that are eligible include the following:

• User subscription licenses (USLs)
• Add-ons
• From Software Assurance (SA)

End of enrollment required actions

If a customer is opted in to EPT, at the end of their enrollment term, they need to take one of the following actions. Otherwise, the EPT service begins.

1. Renew the enrollment within the same program—Enterprise Agreement (EA), Enterprise Agreement Subscription (EAS), or Server and Cloud Enrollment (SCE).
2. Opt out of the EPT service by completing and submitting the OLSET (available in Volume Licensing Central). This is used when the customer no longer needs the extended service. It's also applicable if they migrate programs. For example, they might move from an Enterprise Agreement (EA) to a Cloud Solution Provider. Other possible migrations include moving to a Microsoft Products and Services Agreement, Open Value, or other similar programs.

Option 1: Renewal—the prior enrollment should be listed on the new Enrollment form header or on one or more Previous Enrollments Agreement Form submitted.

Option 2: Opt out—If the enrollment or tenant isn't being renewed into another EA, EAS, or SCE, an opt-out form should be submitted 30 days before the expiry of the enrollment to stop EPT invoices from generating. If the customer is moving to another licensing program,  this is considered a program migration, not a renewal. An opt-out form must still be submitted.

The Online Services Extended Term Option Form (OLSET)

The OLSET is available in Volume Licensing Central and includes all applicable online service offerings in the dropdown menu. There are 170 online services available to choose from the dropdown menu. Refer to the product terms to identify all EPT-eligible services. The form is available in both English and localized versions. You can download the form Volume Licensing Central

Note: The customer can opt out of OLS using the OLSET, except for Azure services. The termination or migration of Azure services requires the user to open a support ticket with the Azure Support Team, via the Azure portal, requesting the appropriate action.

How to tell if a customer is opted in to or out of EPT

• An opt-out form (the OLSET) is required for each enrollment that’s not being renewed. It's also needed to prevent or stop EPT billing. (Lead and billing enrollments need their own.)
• The customer can change their status. They can alter their opt-in/out status while their enrollment is active. After the enrollment expires, customer can still choose to opt out, but they can no longer opt in to EPT.

Office 365 opts in/out behavior

EPT billing occurs mid-month for EPT-eligible OLS products. The generation of the invoice enables the service. (If no invoice is generated, the grace period for the product starts.) Opting out will only be effective from the next monthly EPT cycle. Billing occurs for a full month minimum.

Notes:

• This applies to VL programs.
• Information is accurate as of February 2021.
• Corporate customers are opted in to EPT by default, while government and public sector customers are opted out by default (except for SCE where all entities are opted in by default).
• Refer to the Enterprise enrollment terms and conditions (T&Cs) and product terms for more details.

Example scenario 1: No opt out

• Scenario: Customer doesn’t renew their agreement and doesn’t send the opt-out form at least 30 days before the enrollment expiration, as required by the T&Cs for opting out of EPT.
• Action: Post-enrollment expiry, the EPT invoice is generated and EPT service is enabled.
• Outcome: EPT and monthly billing are initiated, and existing Online Services remain fully enabled. Note: Per enrollment T&Cs, monthly billing is done at the then-current published price for the customer’s price level plus 3 percent for up to 12 months’ duration. After 12 months, pricing is reset to price level A  of the price list applicable at that time plus 3 percent. EPT invoices don't stop until the customer takes action.

Example scenario 2: On-time opt out

• Scenario: The customer doesn’t renew their agreement and sends out the EPT opt-out form at least 30 days prior to the enrollment expiration, as required by the T&Cs, to opt out of EPT.
• Action: ROC opts out the customer.
• Outcome: EPT and monthly billing don’t initiate. Customer licenses and subscriptions go through the standard deprovisioning lifecycle process. Example scenario 3: Late opt out
• Scenario: The customer doesn’t renew their agreement and the monthly EPT billing starts. They send the EPT opt-out form to stop the EPT service.
• Action: ROC opts out the customer.
• Outcome: The ROC doesn’t credit any of the EPT monthly invoices that have already been issued but stops the extended period service and any future monthly billings. Example scenario 4: Full OLS renewal
• Scenario: The customer doesn’t renew their agreement on time and monthly EPT billing has already started (for example, the renewal is three months late with three EPT invoices generated). Later they renew and request credit for the EPT invoices.
• Action: Renewal is submitted with the previous enrollment listed. An OLSET form isn’t required. ROC credits the EPT invoice from the CPS processing date. All OLS products on the CPS are prorated to begin from the month the renewal is processed. ROC opts out the customer from any future EPT invoices.
• Outcome: All OLS products are prorated from the month the renewal is processed. One EPT invoice from the month the renewal is processed is credited. All prior EPT invoices remain due. Enrollment is backdated to one day after the expiry of the prior enrollment. Example scenario 5: Migration
• Scenario: The customer migrates to another program (such as Open Value or CSP) but doesn’t submit an opt-out form. EPT invoices were created and the customer requests a credit for the monthly invoices received.
• Example: Customer migrates to Open Value from an Enterprise Agreement but doesn’t submit an opt-out form. ROC was advised of the migration three months after the expiration of the previous enrollment.
• Action: ROC don't issue a credit as a program migration is not a renewal and thus ineligible for credit adjustment. The opt-out form wasn’t submitted to cancel the service that was made available to the customer.
• Outcome: The extended service will continue until the opt-out form is submitted. ROC don't credit the EPT invoices. Invoices remain due.

Appendix

Known issues which might have an impact on OLS

• Nonanniversary order placed within 30 days of anniversary (EAS): What happens? The customer places a non-anniversary order during their compliance window. The intention is for this order to be incremental, but our systems interpret this as the annual order and reduces the seat count immediately. Partner action required: Ensure that you or your customers aren't submitting nonanniversary orders within 30 days of the anniversary. Submit your annual order first before submitting any extra orders.
• Nonanniversary order placed while subscription in grace period (EAS): What happens? The customer places an order after anniversary while the subscription is in grace period and negotiations for next annual order are being submitted. The intention is for this order to be incremental, but our systems interpret this as the annual order and reduces the seat count immediately. Partner action required: Ensure that you or your customers do not submit nonanniversary orders following your anniversary if you haven't submitted your annual order. Submit your annual order first before proceeding to submit any extra orders.
• Quoting an EPT-enabled enrollment as a prior when signing a new agreement: What happens? By design, our systems switch off EPT services when a customer renews into another Enterprise enrollment where the EPT-enabled enrollment number is listed as a prior enrollment. For example, this occurs when an EA is listed as a prior enrollment on a new Select Plus agreement. Partner action required: If you’re quoting an enrollment as a prior enrollment, ensure that your new agreement contains the same services to avoid losing access to them.
• EPT doesn't cover all SKU’s: What happens? Partners need to know that not all SKUs are covered by EPT and as such, these services will stop functioning once the grace period has ended on an expired enrollment. Refer to the product terms for EPT-eligible OLS. Partner action required: The only way to fully protect against loss of service for all Online Services is to renew on time.
• Step-ups: What happens? Step-up (SU) licenses aren't covered by EPT. For instance, a customer who has Microsoft 365 E3 steps up to Microsoft 365 E5. When their enrollment ends, the service goes into grace period on the E5 until the EPT invoice generates, but then only the Microsoft 365 E3 gets EPT. However, if the customer ordered even a single unit of Microsoft 365 E5 full license, only that license gets the EPT service enabled and negate any EPT for the quantity stepped up. Thus, in this scenario, the customer might lose service of the step-up version of the product. Partner action required: The only way to fully protect against loss of service for all OLS is to renew on time.

EPT FAQ

• Opting Out of EPT: To opt out of EPT, you need to submit an EPT opt-out form, known as the OLSET, to the ROC for processing. This form must be submitted at least 30 days before the customer enrollment expires. The OLSET form is available on Volume Licensing Central.
• Ensuring OLS Service Stops at EA Expiration: To ensure that the Online Services (OLS) stop at the expiration of your Enterprise Agreement (EA), you must opt out of EPT functionality 30 days before the customer enrollment expires. Alternatively, you can process the renewal into another Enterprise Agreement.
• Stopping Future Monthly Billings: If you're currently in EPT and wish to stop future monthly billings, you need to submit the OLSET to cancel the service and future monthly billings. Another option is to renew the enrollment into another Enterprise Agreement.
• Azure Services and EPT Opt-Out: It's important to note that opting out of EPT does not apply to Azure services. These services continue to be provided and billed for even after your EA enrollment expires. To terminate Azure services, you need to cancel them via the Azure Portal.
• EPT Services for Government Customers: Government customers are programmatically opted out of EPT services. To receive EPT services, you need to submit an OLSET to opt in at least 30 days before your enrollment expires. Opting in after the enrollment expires is not possible.
• EPT Services for Government Customers with SCE: Entities with a Server and Cloud Enrollment (SCE) are programmatically opted in for EPT services. No action is required to receive these services.
• Early Opt-Out During Renewal Discussions: If a customer decides early to opt out of EPT during renewal discussions, they can include the OLSET in the renewal agreement package. To avoid EPT services and associated invoices, the OLSET must be submitted at least 30 days before the enrollment expires. For instance, a commercial customer who is opted in by default can include the OLSET in the renewal agreement pack to opt out. However, there's a risk that if they don't renew on time in three years, they'll enter the OLS deprovisioning cycle and might lose access to OLS.
• Late Renewal and EPT Invoice Credits: If you renew late, the EPT invoice applicable to the month the renewal is processed are credited. However, any other outstanding EPT invoices from prior months remain payable.