Billing scenarios for one-time and recurring purchases in Cloud Solution Providers program (CSP) new commerce experience
Appropriate roles: Admin agent | Billing admin | Helpdesk agent | Sales agent
Note
For a list of Cloud Solution Providers program (CSP) legacy billing scenarios, see Common billing scenarios for legacy CSP program partners working in Partner Center.
What is a new commerce billing cycle or billing period?
A new commerce billing cycle, or billing period, is one full calendar month. You pay based on the billing term and plan you choose.
You get your invoice and reconciliation data from Partner Center or via APIs in the next month. For example, if the billing period is January 1 to 31, you receive your invoice and reconciliation data for January between February 6 and 8.
What is a new commerce charge cycle?
A new commerce charge cycle is the number of days you pay for a subscription. It's not the same as a billing period or a calendar month. The length of the charge cycle depends on how many days there are in the month when you buy, renew, or adjust your subscription.
For instance, if you bought an annual Microsoft Office subscription on February 21, 2022, with a monthly billing plan, your first charge cycle would run from February 21 to March 20, 2022. The charge cycle ends one day before the same date of the next month, year, or billing term, depending on your billing plan or frequency.
In this case, the first charge cycle is 28 days because February has 28 days (except in leap years). The second charge cycle is 31 days because March has 31 days, lasting from March 21 to April 20. The third charge cycle is 30 days because April has 30 days, from April 21 to May 20. The recurring charge cycle always starts on the same day you bought or renewed your subscription.
Understanding your charge cycle helps you manage your subscription payments effectively. This consistency ensures that you're aware of your billing dates, making financial planning simpler and more predictable.
Tip
To end a subscription with another subscription or a calendar month, see align subscription end dates.
How are one-time and recurring charges calculated?
Important
To reconcile, include these billing details: Charge Start Date, Charge End Date, Effective Unit Price, Billable Quantity, Billing Frequency, Subscription Start Date, Subscription End Date, and Amount.
For more information, see CSP one-time purchase reconciliation file fields.
Let's say, on June 18, 2020, you bought 10 monthly licenses of Microsoft 365 Business Standard subscription for a unit price of EUR 10.08. Your goal is to reconcile your charges in the billing period efficiently.
Here's how your June billing period reconciliation line items look when you receive them in July. It features a clear billing line item with all the purchase details.
This streamlined approach ensures accurate financial tracking and makes managing your subscriptions easier.
OrderDate | ChargeStartDate | ChargeEndDate | ChargeType | EffectiveUnitPrice | BillableQuantity | Total |
---|---|---|---|---|---|---|
June 18, 2021 | June 18, 2021 | July 17, 2021 | new | 10.08 | 10 | 100.8 |
When you renew your subscription, you see a new billing line item or transaction. This line item should have the ChargeType
listed as "renew" and the ChargeStartDate
as "July 18, 2021."
OrderDate | ChargeStartDate | ChargeEndDate | ChargeType | EffectiveUnitPrice | BillableQuantity | Total |
---|---|---|---|---|---|---|
July 18, 2021 | July 18, 2021 | August 17, 2021 | renew | 10.08 | 10 | 100.8 |
When you choose an annual subscription, you pay EUR 100.8 each month for a year, starting in July. From August onwards, these charges are marked with the ChargeType
"cycleCharge."
OrderDate | ChargeStartDate | ChargeEndDate | ChargeType | EffectiveUnitPrice | BillableQuantity | Total |
---|---|---|---|---|---|---|
July 18, 2021 | July 18, 2021 | August 17, 2021 | cycleCharge | 10.08 | 10 | 100.8 |
When you prepay for your annual subscription, you see a single billing line item in your June reconciliation data.
OrderDate | ChargeStartDate | ChargeEndDate | ChargeType | EffectiveUnitPrice | BillableQuantity | Total |
---|---|---|---|---|---|---|
June 18, 2021 | June 18, 2021 | June 17, 2022 | new | 120.96 | 10 | 1,209.6 |
Your reconciliation data shows how much you're billed for your subscriptions. Clearly understanding these details helps you stay on top of your subscription costs and simplify your financial tracking.
Important
When you purchase Microsoft 365 E5, you get in a comprehensive solution that covers both telecommunication and non-telecommunication services. To make billing clearer and more manageable, you see two separate line items or transactions in your reconciliation data: one for telecommunication charges and another for non-telecommunication charges. This distinction helps you better understand and track your charges and taxes, ensuring a smooth and transparent billing process.
How do I differentiate between one-time and recurring payments in the reconciliation data?
One-time payment:
ChargeStartDate
andChargeEndDate
match theSubscriptionStartDate
andSubscriptionEndDate
.BillingFrequency
is blank.
Recurring payment or billing plan:
ChargeStartDate
andChargeEndDate
are a month apart. TheBillingFrequency
is "Monthly."ChargeStartDate
andChargeEndDate
are one year apart. TheBillingFrequency
is "Annual."
How to calculate the costs of a product or subscription with both fixed fee and pay-as-you-go charges?
Maximizing the benefits of your subscription-based products is easy and straightforward. Some subscription-based products have a fixed number of prepaid units at a fixed price. You pay for any extra usage at a pay-as-you-go rate. For example, these products:
Microsoft 365 subscription: Pay USD 10 per month and get 100 minutes of calls. Extra minutes are 10 cents each.
SendGrid product: Pay USD 10 per month and send 100 emails. Extra emails are 10 cents each.
Going over 150 minutes of calls or emails per month costs you extra.
To calculate costs for these subscriptions using the daily rated usage and invoice reconciliation data, follow these steps:
The
BillingPreTaxTotal
shows your daily pay-as-you-go charges. For example, if you use 50 extra minutes at 10 cents per minute, you pay USD 5 for that day.Verify your monthly pay-as-you-go charges by comparing the
Total
in the invoice reconciliation data with USD 5. TheBillableQuantity
should be 50 units.The
Total
shows your subscription cost based on your billing plan. For monthly plans, you pay USD 10 each month.To get the total cost, look at the Product and SKU IDs in the invoice reconciliation data. You might see two line items for fixed fees and pay-as-you-go costs. The total should be USD 15.
These steps help you manage your subscription costs and use them wisely.
How do I determine the product category?
Use these methods to find the product category in the reconciliation data. They work for most transactions, except in rare cases.
Condition | Product Category |
---|---|
PublisherName says "Microsoft" or "Microsoft Corporation" |
First-party product |
PublisherName isn't "Microsoft" or "Microsoft Corporation," and "PublisherID" isn't empty. |
Non-Microsoft or Marketplace product |
TermAndBillingCycle has the keyword "Reservation." |
Azure reservation |
TermAndBillingCycle has the keyword "Savings Plan." |
Azure savings plan |
TermAndBillingCycle has the keyword "Subscription." If the word "Subscription" is missing, use the SKU name instead, such as "SQL Server" or "Windows Server." |
Software subscription |
TermAndBillingCycle has the phrase "one-month," "one-year," or "three-year." |
License-based. However, double-check to confirm. |
TermAndBillingCycle is blank, and "ChargeEndDate" is empty. |
Perpetual software |
SubscriptionDescription says "Azure plan." |
Azure plan |
Remaining conditions | Use Azure plan as the name for the remaining product category. You can give each subscription a different name if you want. Make sure nothing is missing. |
How do I find the billing term in a reconciliation file?
TermAndBillingCycle
can have different texts depending on the subscription. There's no standardized text to describe them.
The billing term is the time span of your subscription, which is the period between the start and end dates of your subscription.
The billing plan is how often you pay for it. The period between the start and end dates of your charge is the duration of your billing plan.
See the examples:
TermAndBillingCycle | SubscriptionStartDate | SubscriptionEndDate | ChargeStartDate | ChargeEndDate |
---|---|---|---|---|
One-year commitment for monthly/yearly billing | April 15, 2021 | April 14, 2022 | April 15, 2021 | May 14, 2021 |
One-year term duration | April 22, 2021 | April 21, 2022 | April 22, 2021 | April 21, 2022 |
One-month commitment for monthly billing | April 10, 2021 | May 9, 2021 | April 10, 2021 | May 9, 2021 |
Three-year commitment for monthly/yearly billing | May 25, 2021 | May 24, 2024 | May 25, 2021 | May 24, 2022 |
Monthly term subscription expiration dates on special cases
Here's when monthly subscriptions expire when you buy near the end of a month:
When you buy on the last day of a month
If you buy a monthly subscription on the last day of a month, your subscription and charge end on the:
- 30th day of the next month that has 31 days.
- 29th day of the next month that has 30 days.
- 27th day of the next month that has 28 days (February in a nonleap year).
- 28th day of the next month that has 29 days (February in a leap year).
Note
The line items are unrelated to each other, and the dates are in Coordinated Universal Time (UTC). Subscription charges start on the last day of each month and stop one day before that day next month.
Reconciliation line items of a monthly subscription:
BillingTerm | OrderDate | ChargeType | SubscriptionStartDate | SubscriptionEndDate | RenewDate | ChargeStartDate | ChargeEndDate |
---|---|---|---|---|---|---|---|
Monthly | January 31, 2021 | new | January 31, 2021 | February 27, 2021 | February 28, 2021 | January 31, 2021 | February 27, 2021 |
Monthly | January 31, 2021 | new | January 31, 2021 | February 27, 2021 | February 28, 2021 | January 31, 2021 | February 27, 2021 |
Monthly | February 28, 2021 | new | February 28, 2021 | March 27, 2021 | March 28, 2021 | February 28, 2021 | March 27, 2021 |
Monthly | May 31, 2021 | new | May 31, 2021 | June 29, 2021 | June 30, 2021 | May 31, 2021 | June 29, 2021 |
Monthly | June 30, 2021 | new | June 30, 2021 | July 29, 2021 | July 30, 2021 | June 30, 2021 | July 29, 2021 |
Monthly | July 31, 2021 | new | July 31, 2021 | August 30, 2021 | August 31, 2021 | July 31, 2021 | August 30, 2021 |
Reconciliation line items of an annual subscription with a monthly billing plan:
BillingTerm | BillingPlan | OrderDate | ChargeType | SubscriptionStartDate | SubscriptionEndDate | RenewDate | ChargeStartDate | ChargeEndDate |
---|---|---|---|---|---|---|---|---|
Annual | Monthly | January 31, 2021 | new | January 31, 2021 | January 30, 2022 | January 31, 2022 | January 31, 2021 | February 27, 2021 |
Annual | Monthly | February 28, 2021 | cycleCharge | January 31, 2021 | January 30, 2022 | January 31, 2022 | February 28, 2021 | March 30, 2021 |
Annual | Monthly | March 31, 2021 | cycleCharge | January 31, 2021 | January 30, 2022 | January 31, 2022 | March 31, 2021 | April 29, 2021 |
Annual | Monthly | April 30, 2021 | cycleCharge | January 31, 2021 | January 30, 2022 | January 31, 2022 | April 30, 2021 | May 30, 2021 |
Annual | Monthly | May 31, 2021 | cycleCharge | January 31, 2021 | January 30, 2022 | January 31, 2022 | May 31, 2021 | June 29, 2021 |
Annual | Monthly | June 30, 2021 | cycleCharge | January 31, 2021 | January 30, 2022 | January 31, 2022 | June 30, 2021 | July 30, 2021 |
Annual | Monthly | July 31, 2021 | cycleCharge | January 31, 2021 | January 30, 2022 | January 31, 2022 | July 31, 2021 | August 30, 2021 |
Annual | Monthly | August 31, 2021 | cycleCharge | January 31, 2021 | January 30, 2022 | January 31, 2022 | August 31, 2021 | September 29, 2021 |
Annual | Monthly | September 30, 2021 | cycleCharge | January 31, 2021 | January 30, 2022 | January 31, 2022 | September 30, 2021 | October 30, 2021 |
Annual | Monthly | October 31, 2021 | cycleCharge | January 31, 2021 | January 30, 2022 | January 31, 2022 | October 31, 2021 | November 29, 2021 |
Annual | Monthly | November 30, 2021 | cycleCharge | January 31, 2021 | January 30, 2022 | January 31, 2022 | November 30, 2021 | December 30, 2021 |
Annual | Monthly | December 31, 2021 | cycleCharge | January 31, 2021 | January 30, 2022 | January 31, 2022 | December 31, 2021 | January 30, 2022 |
When you buy on the day before the last day of a month
If you buy a monthly subscription on the day before the last day of a month, your subscription and charge end on the:
- 29th day of the next month that has 31 days.
- 28th day of the next month that has 30 days.
- 26th day of the next month that has 28 days (February in a nonleap year).
- 27th day of the next month that has 29 days (February in a leap year).
Note
The line items are unrelated to each other, and the dates are in Coordinated Universal Time (UTC). Subscription charges start one day before the end of each month and stop one day before that day next month.
Reconciliation line items of a monthly subscription:
BillingTerm | OrderDate | ChargeType | SubscriptionStartDate | SubscriptionEndDate | RenewDate | ChargeStartDate | ChargeEndDate |
---|---|---|---|---|---|---|---|
Monthly | January 30, 2021 | new | January 30, 2021 | February 26, 2021 | February 27, 2021 | January 30, 2021 | February 26, 2021 |
Monthly | February 27, 2021 | new | February 27, 2021 | March 29, 2021 | March 30, 2021 | February 27, 2021 | March 29, 2021 |
Monthly | May 30, 2021 | new | May 30, 2021 | June 29, 2021 | June 30, 2021 | May 30, 2021 | June 29, 2021 |
Monthly | June 29, 2021 | new | June 29, 2021 | July 28, 2021 | July 29, 2021 | June 29, 2021 | July 28, 2021 |
Monthly | July 30, 2021 | new | July 30, 2021 | August 29, 2021 | August 30, 2021 | July 30, 2021 | August 29, 2021 |
Reconciliation line items of an annual subscription with a monthly billing plan:
BillingTerm | BillingPlan | OrderDate | ChargeType | SubscriptionStartDate | SubscriptionEndDate | RenewDate | ChargeStartDate | ChargeEndDate |
---|---|---|---|---|---|---|---|---|
Annual | Monthly | January 30, 2021 | new | January 30, 2021 | January 29, 2022 | January 30, 2022 | January 30, 2021 | February 27, 2021 |
Annual | Monthly | February 28, 2021 | cycleCharge | January 30, 2021 | January 29, 2022 | January 30, 2022 | February 28, 2021 | March 29, 2021 |
Annual | Monthly | March 30, 2021 | cycleCharge | January 30, 2021 | January 29, 2022 | January 30, 2022 | March 30, 2021 | April 29, 2021 |
Annual | Monthly | April 30, 2021 | cycleCharge | January 30, 2021 | January 29, 2022 | January 30, 2022 | April 30, 2021 | May 29, 2021 |
Annual | Monthly | May 30, 2021 | cycleCharge | January 30, 2021 | January 29, 2022 | January 30, 2022 | May 30, 2021 | June 29, 2021 |
Annual | Monthly | June 30, 2021 | cycleCharge | January 30, 2021 | January 29, 2022 | January 30, 2022 | June 30, 2021 | July 29, 2021 |
Annual | Monthly | July 30, 2021 | cycleCharge | January 30, 2021 | January 29, 2022 | January 30, 2022 | July 30, 2021 | August 29, 2021 |
Annual | Monthly | August 30, 2021 | cycleCharge | January 30, 2021 | January 29, 2022 | January 30, 2022 | August 30, 2021 | September 29, 2021 |
Annual | Monthly | September 30, 2021 | cycleCharge | January 30, 2021 | January 29, 2022 | January 30, 2022 | September 30, 2021 | October 29, 2021 |
Annual | Monthly | October 30, 2021 | cycleCharge | January 30, 2021 | January 29, 2022 | January 30, 2022 | October 30, 2021 | November 29, 2021 |
Annual | Monthly | November 30, 2021 | cycleCharge | January 30, 2021 | January 29, 2022 | January 30, 2022 | November 30, 2021 | December 29, 2021 |
Annual | Monthly | December 30, 2021 | cycleCharge | January 30, 2021 | January 29, 2022 | January 30, 2022 | December 30, 2021 | January 29, 2022 |
How are licenses added or removed?
Find out how we adjust the charges for license-based products when you update the license count.
Let's say, you bought 10 licenses of a monthly "Microsoft 365 Business Standard" subscription on June 18, 2021. The unit price of each license is EUR 10.08. You added two more licenses on June 20.
Here are the reconciliation line items for the June billing period:
OrderDate | ChargeType | UnitPrice | ChargeStartDate | ChargeEndDate | EffectiveUnitPrice | BillableQuantity | Total |
---|---|---|---|---|---|---|---|
June 18, 2021 | new | 10.08 | June 18, 2021 | July 17, 2021 | 10.08 | 10 | 100.8 |
June 20, 2021 | addQuantity | 10.08 | June 20, 2021 | July 17, 2021 | -9.408 | 10 | -94.08 |
June 20, 2021 | addQuantity | 10.08 | June 20, 2021 | July 17, 2021 | 9.408 | 12 | 112.89 |
To change the number of licenses, we follow two steps at once:
- Refund (wipe): a refund for original number of licenses from the day you change them until the end of the charge cycle.
- Charge (recreate): a charge for the new number of licenses for the same duration.
This formula shows the EffectiveUnitPrice
, which is your price. You might also get adjustments or discounts that can lower your final price, but we didn't include them here for simplicity.
EffectiveUnitPrice
= UnitPrice
/ days in the charge cycle * billing days.
Billing days are counted from when an event occurs until the charge cycle ends.
Note
Effective unit price varies based on the number of days in a billing month. For example, June has 30 days and August has 31 days. Annual billing is fixed at 365 days, except in leap years when it adds one extra day.
In this example, the first line item is an EUR 100.8 charge for using 10 licenses from June 18 to July 17, or 30 days. The unit price of each license is EUR 10.08. The
EffectiveUnitPrice
andUnitPrice
are the same when the charge cycle has the same number of days as the billable days.Total
(Charge) =EffectiveUnitPrice
(10.08) *BillableQuantity
(10) = 100.8. To simplify the total cost, we didn't include taxes and exchange rates.
The second line item is a refund of EUR 94.08 for 10 licenses unused for 28 days from June 20 to July 17. The
EffectiveUnitPrice
is adjusted based on the billable days.Total
(refund) =EffectiveUnitPrice
(10.08 / 30 * 28) *BillableQuantity
(10) = 94.08. To simplify the total cost, we didn't include taxes and exchange rates.
The third line item is a charge of EUR 112.8 for 12 licenses used for 28 days from June 20 to July 17. The
EffectiveUnitPrice
is adjusted based on the billable days.Total
(Charge) =EffectiveUnitPrice
(10.08 / 30 * 28) *BillableQuantity
(12) = 112.89. To simplify the total cost, we didn't include taxes and exchange rates.
Let's say, you remove four licenses on June 20. We then adjust the charges accordingly.
Reconciliation line items for June billing period after removing the licenses:
OrderDate | ChargeType | UnitPrice | ChargeStartDate | ChargeEndDate | EffectiveUnitPrice | BillableQuantity | Total |
---|---|---|---|---|---|---|---|
June 20, 2021 | removeQuantity | 10.08 | June 20, 2021 | July 17, 2021 | -9.408 | 12 | -112.89 |
June 20, 2021 | removeQuantity | 10.08 | June 20, 2021 | July 17, 2021 | 9.408 | 8 | 75.26 |
The first line item is a refund of EUR 112.89 for 12 licenses unused for 28 days from June 20 to July 17. The
EffectiveUnitPrice
is adjusted based on the billable days.Total
(refund) =EffectiveUnitPrice
(10.08 / 30 * 28) *BillableQuantity
(12) = 112.89. To simplify the total cost, we didn't include taxes and exchange rates.
The second line item is an EUR 75.26 charge for eight licenses used for 28 days from June 20 to July 17. The
EffectiveUnitPrice
is adjusted based on the billable days.Total
(Charge) =EffectiveUnitPrice
(10.08 / 30 * 28) *BillableQuantity
(8) = 75.26. To simplify the total cost, we didn't include taxes and exchange rates.
How are the refunds calculated if I cancel a subscription?
Let's say, you bought 10 licenses of a monthly Microsoft 365 Business Standard subscription on July 15, 2021, and canceled the subscription on July 17. The unit price of each license is EUR 10.0.
Here are the reconciliation line items for the July billing period after your cancellation:
OrderDate | ChargeType | UnitPrice | ChargeStartDate | ChargeEndDate | EffectiveUnitPrice | BillableQuantity | Total |
---|---|---|---|---|---|---|---|
July 15, 2021 | new | 10.08 | July 15, 2021 | August 14, 2021 | 10.08 | 10 | 100.8 |
July 17, 2021 | cancelImmediate | 10.08 | July 17, 2021 | August 14, 2021 | -9.42 | 10 | -94.2 |
The first line item is a charge of EUR 100.8 for 10 licenses used from July 15 to August 14 for 31 days. The unit price per license is EUR 10.08. The
EffectiveUnitPrice
andUnitPrice
are the same when the charge cycle has the same number of days as the billable days.Total
(Charge) =EffectiveUnitPrice
(10.08) *BillableQuantity
(10) = 100.8. To simplify the total cost, we didn't include taxes and exchange rates.
The second line item is a refund of EUR 94.2 for 10 licenses unused from July 17 to August 14 for 29 days. The
EffectiveUnitPrice
is prorated based on the billable days.Total
(refund) =EffectiveUnitPrice
(10.08 / 31 * 29) *BillableQuantity
(10) = 94.2. To simplify the total cost, we didn't include taxes and exchange rates.
Tip
Get a full refund if you cancel your subscription within 24 hours of purchase or renewal. Get a prorated refund depending on how long you use the service if you cancel later but still within seven days of purchase or renewal. You pay only for what you use.
Important
If you don't cancel within seven days, you get no refund and pay for the full subscription term, even if you don't use the product. See the new commerce cancellation policy.
How should I reconcile and link upgraded transactions?
You have two options to upgrade your subscription:
- Full upgrade, switch all licenses of a subscription to a more advanced one.
- Partial upgrade, switch only some of the licenses of a subscription to a more advanced one.
Full upgrade
Let's say, you bought 300 licenses of a Microsoft 365 Business Standard monthly subscription on June 18 for your customer Contoso. The unit price of each license is EUR 10.08. On June 25, you upgraded the subscription to Office 365 E1, as Contoso requested. The unit price of each license of the upgraded subscription is EUR 6.43.
We charge you only for the new subscription from the day you upgrade. You don't pay for the base subscription after upgrading and we refund any amounts that we already charged. You pay for what you use, and your billing is accurate and transparent.
Reconciliation line items for June billing period after upgrade:
OrderDate | ProductName | ChargeType | UnitPrice | ChargeStartDate | ChargeEndDate | EffectiveUnitPrice | BillableQuantity | Total | SubscriptionId | ReferenceId |
---|---|---|---|---|---|---|---|---|---|---|
June 18, 2021 | Microsoft 365 Business Standard | new | 10.08 | June 18, 2021 | July 17, 2021 | 10.08 | 300 | 3024 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | 7d71c595-4635-40d1-a9e2-b34e63b01764 |
June 25, 2021 | Microsoft 365 Business Standard | convert | 10.08 | June 25, 2021 | July 17, 2021 | -7.72 | 300 | -2316 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | 12d33e18-061e-4040-ad77-fcd77c1a9943 |
June 25, 2021 | Office 365 E1 | convert | 6.43 | June 25, 2021 | July 17, 2021 | 4.92 | 300 | 1476 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | 12d33e18-061e-4040-ad77-fcd77c1a9943 |
EffectiveUnitPrice
=UnitPrice
/ days in the charge cycle * billing days. Billing days are counted from when an event occurs until the charge cycle ends.The first line item is a charge of EUR 3,024 for the Microsoft 365 Business Standard subscription used for the whole month from June 18 to July 17. The unit price of a license is EUR 10.08. The
EffectiveUnitPrice
andUnitPrice
are the same when the charge cycle has the same number of days as the billable days.Total
(Charge) =EffectiveUnitPrice
(10.08) *BillableQuantity
(300) = 3,048. To simplify the total cost, we didn't include taxes and exchange rates.
The second line item is a refund of EUR 2,316 for the same subscription unused from June 25 to July 17 for 23 days. The
EffectiveUnitPrice
is prorated based on the billable days.Total
(refund) =EffectiveUnitPrice
(10.08 / 30 * 23) *BillableQuantity
(300) = 2,316. To simplify the total cost, we didn't include taxes and exchange rates.
The third line item is a charge of EUR 1,476 for the new subscription used from June 25 to July 17 for 23 days. The
EffectiveUnitPrice
is prorated based on the billable days.Total
(Charge) =EffectiveUnitPrice
(6.43 / 30 * 23) *BillableQuantity
(300) = 1,476. To simplify the total cost, we didn't include taxes and exchange rates.
Note
To upgrade to a new advanced subscription, we use charge type "convert." If you already have an advanced subscription, we use charge type "moveQuantity."
Partial upgrade
Let's say, you bought 300 licenses of a Microsoft 365 Business Standard monthly subscription on June 18 for your customer Contoso. The unit price of each license is EUR 10.08. On June 25, you upgraded 100 licenses of the subscription to Office 365 E1, as Contoso requested. The unit price of each license of the upgraded subscription is EUR 6.43.
We charge you only for the new subscription from the day you upgrade. You don't pay for the licenses of base subscription that you upgraded, and we refund any amounts that we already charged. You pay for what you use, and your billing is accurate and transparent.
Reconciliation line items for June billing period after upgrade:
OrderDate | ProductName | ChargeType | UnitPrice | ChargeStartDate | ChargeEndDate | EffectiveUnitPrice | BillableQuantity | Total | SubscriptionId | ReferenceId |
---|---|---|---|---|---|---|---|---|---|---|
June 18, 2021 | Microsoft 365 Business Standard | new | 10.08 | June 18, 2021 | July 17, 2021 | 10.08 | 300 | 3024 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | 7d71c595-4635-40d1-a9e2-b34e63b01764 |
June 25, 2021 | Microsoft 365 Business Standard | convert | 10.08 | June 25, 2021 | July 17, 2021 | -7.72 | 100 | -772 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | 12d33e18-061e-4040-ad77-fcd77c1a9943 |
June 25, 2021 | Office 365 E1 | convert | 6.43 | June 25, 2021 | July 17, 2021 | 4.92 | 100 | 492 | 6759acd5-a8a9-4402-94b7-803baa64a78e | 12d33e18-061e-4040-ad77-fcd77c1a9943 |
EffectiveUnitPrice
=UnitPrice
/ days in the charge cycle * billing days. Billing days are counted from when an event occurs until the charge cycle ends.The first line item is a charge of EUR 3,024 for the Microsoft 365 Business Standard subscription used for the whole month from June 18 to July 17. The unit price of each license is EUR 10.08. The
EffectiveUnitPrice
andUnitPrice
are the same when the charge cycle has the same number of days as the billable days.Total
(Charge) =EffectiveUnitPrice
(10.08) *BillableQuantity
(300) = 3,048. To simplify the total cost, we didn't include taxes and exchange rates.
The second line item is a refund of EUR 772 refund for 100 licenses of the base subscription unused from June 25 to July 17 for 23 days . The
EffectiveUnitPrice
is prorated based on the billable days.Total
(refund) =EffectiveUnitPrice
(10.08 / 30 * 23) *BillableQuantity
(100) = 772. To simplify the total cost, we didn't include taxes and exchange rates.
The third line item is a charge of EUR 492 for the upgraded subscription used from June 25 to July 17 for 23 days. The
EffectiveUnitPrice
is prorated based on the billable days.Total
(Charge) =EffectiveUnitPrice
(6.43 / 30 * 23) *BillableQuantity
(100) = 492. To simplify the total cost, we didn't include taxes and exchange rates.
Note
The negative charge adjusts the cost for the rest of the charge cycle.
Note
To upgrade to a new advanced subscription, we use ChargeType
"convert." If you already have an advanced subscription, we use ChargeType
"moveQuantity."
How can I link my upgraded subscriptions?
To see the transactions or billing line items from your subscription upgrade, you need two IDs: SubscriptionId
and ReferenceId
. Find the ReferenceId
that matches your base SubscriptionId
. Then use the ReferenceId
to link all the related transactions or billing line items.
How do I reconcile after I convert a trial version to a paid subscription?
Let's say, you bought 25 "Dynamics 365 Guides" license as a free trial on June 25, 2021. They expire after one month. You can switch to the paid version whenever you want during or after the trial.
Reconciliation line items for the June billing period after switching to paid subscription:
OrderDate | ChargeType | UnitPrice | ChargeStartDate | ChargeEndDate | EffectiveUnitPrice | BillableQuantity | ProductQualifiers | Total |
---|---|---|---|---|---|---|---|---|
June 25, 2021 | new | 0 | June 25, 2021 | July 24, 2021 | 0 | 25 | ["Trial"] | 0 |
June 25, 2021 | convert | 0 | June 25, 2021 | July 24, 2021 | 0 | 25 | ["Trial"] | 0 |
June 25, 2021 | convert | 52.61 | June 25, 2021 | July 24, 2021 | 52.61 | 25 | 1,315.25 |
The first line item is the purchase of the free trial subscription, which has no cost. Check the costs and the
ProductQualifiers
.You upgraded to the paid version the same day you started the trial. The second line item cancels the trial subscription.
The third line item is a charge of EUR 1,315.25 for the paid subscription used from June 25, 2021, to July 24, 2021 for 30 days.
Total
(Charge) =EffectiveUnitPrice
(52.61 / 30 * 30) *BillableQuantity
(25) = 1,315.25. To simplify the total cost, we didn't include taxes and exchange rates.
How do I find out the total number of licenses after several adjustments during a billing period?
Let's say, you bought 10 licenses of a Microsoft 365 Business Standard annual subscription with a monthly billing plan for your customer Contoso on March 5, 2022. After that you adjusted the license counts several times during the billing period as they needed.
Added 5 licenses on March 7 and 10 licenses on March 10.
Removed two licenses on March 12 and three licenses on March 14.
Added 10 licenses on March 25.
Upgraded five licenses to Office 365 E1 on March 27.
To calculate the total licenses for the billing period, follow these steps:
Look for the transaction or line item with these details:
ChargeType
is "new," andProductName
orSkuName
is "Microsoft 365 Business Standard." If you changed licenses after the first billing period, useChargeType
"cycleCharge" or "renew" instead.Find the
OrderDate
andSubscriptionId
of that transaction or line item of step 1.Sum the
BillableQuantity
of all charge types that have a positiveEffectiveUnitPrice
from the order date onwards for the subscription ID.Sum the
BillableQuantity
of all charge types (except customerCredit) that have a negativeEffectiveUnitPrice
from the order date onwards for the subscription ID.Total licenses = (Sum of the quantities from step 3) - (Sum of the quantities from step 4).
Note
This method shows the number of licenses that are on a monthly payment plan. For annual or one-time billed subscriptions, check each line item when they change.
Reconciliation line items in the March billing period after adjusting the license count:
OrderDate | ProductName | ChargeType | UnitPrice | BillableQuantity | EffectiveUnitPrice | Subtotal | SubscriptionId | ChargeStartDate | ChargeEndDate | ReferenceId |
---|---|---|---|---|---|---|---|---|---|---|
March 5, 2022 | Microsoft 365 Business Standard | new | 12 | 10 | 12.00 | 120 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | March 5, 2022 | April 4, 2022 | 7d71c595-4635-40d1-a9e2-b34e63b01764 |
March 7, 2022 | Microsoft 365 Business Standard | addQuantity | 12 | 10 | -11.23 | -112.25 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | March 7, 2022 | April 4, 2022 | 12d33e18-061e-4040-ad77-fcd77c1a9943 |
March 7, 2022 | Microsoft 365 Business Standard | addQuantity | 12 | 15 | 11.23 | 168.38 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | March 7, 2022 | April 4, 2022 | 12d33e18-061e-4040-ad77-fcd77c1a9943 |
March 10, 2022 | Microsoft 365 Business Standard | addQuantity | 12 | 15 | -10.06 | -150.96 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | March 10, 2022 | April 4, 2022 | dc2a0a41-6a51-4837-8956-af5ffd92b094 |
March 10, 2022 | Microsoft 365 Business Standard | addQuantity | 12 | 25 | 10.06 | 251.61 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | March 10, 2022 | April 4, 2022 | dc2a0a41-6a51-4837-8956-af5ffd92b094 |
March 12, 2022 | Microsoft 365 Business Standard | removeQuantity | 12 | 25 | -9.29 | -232.25 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | March 12, 2022 | April 4, 2022 | 2f8965ff-512b-4233-9a74-1f54a6ad71d0 |
March 12, 2022 | Microsoft 365 Business Standard | removeQuantity | 12 | 23 | 9.29 | 213.67 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | March 12, 2022 | April 4, 2022 | 2f8965ff-512b-4233-9a74-1f54a6ad71d0 |
March 14, 2022 | Microsoft 365 Business Standard | removeQuantity | 12 | 23 | -8.52 | -195.87 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | March 14, 2022 | April 4, 2022 | 73b3dc36-f36d-4bbf-af8f-30c9b73ac4f6 |
March 14, 2022 | Microsoft 365 Business Standard | removeQuantity | 12 | 20 | 8.52 | 170.32 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | March 14, 2022 | April 4, 2022 | 73b3dc36-f36d-4bbf-af8f-30c9b73ac4f6 |
March 25, 2022 | Microsoft 365 Business Standard | addQuantity | 12 | 20 | -4.26 | -85.16 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | March 25, 2022 | April 4, 2022 | 6759acd5-a8a9-4402-94b7-803baa64a78e |
March 25, 2022 | Microsoft 365 Business Standard | addQuantity | 12 | 30 | 4.26 | 127.74 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | March 25, 2022 | April 4, 2022 | 6759acd5-a8a9-4402-94b7-803baa64a78e |
March 27, 2022 | Microsoft 365 Business Standard | convert | 12 | 5 | -3.48 | -17.4 | 284b0ff0-0e74-4f65-cb23-f8ad95867994 | March 27, 2022 | April 4, 2022 | a11af6ef-8523-4eba-b1fa-fe5069dedea7 |
March 27, 2022 | Office 365 E1 | convert | 10 | 5 | 2.90 | 14.50 | c30e1e5c-a20f-4640-83d1-1f7a3e664b43 | March 27, 2022 | April 4, 2022 | a11af6ef-8523-4eba-b1fa-fe5069dedea7 |
How do I reconcile transactions after changing billing plans?
You can change your billing plan after the first charge cycle ends. For example, you can switch from yearly to monthly payments after one year.
For example, you buy 10 licenses of a three-year "Dynamics 365 Commerce" subscription on September 20, 2021, with an annual billing plan. You can switch to monthly payments on September 19, 2022. The next month, your bill shows the monthly charge and says convert for ChargeType
.
Note
Switching your billing plan only changes how much and how often you pay, not the subscription start and end dates.
Reconciliation line items when you switch from annual to monthly billing plan:
ChargeType | BillableQuantity | UnitPrice | EffectiveUnitPrice | Total | ChargeStartDate | ChargeEndDate | BillingFrequency |
---|---|---|---|---|---|---|---|
new | 10 | 250 | 250 | 2,500 | September 20, 2021 | September 19, 2022 | Annual |
convert | 10 | 20 | 20 | 200 | September 20, 2022 | October 19, 2022 | Monthly |
Reconciliation line items when you switch from monthly to annual billing plan:
ChargeType | BillableQuantity | UnitPrice | EffectiveUnitPrice | Total | ChargeStartDate | ChargeEndDate | BillingFrequency |
---|---|---|---|---|---|---|---|
new | 10 | 20 | 20 | 200 | September 20, 2021 | October 19, 2021 | Monthly |
convert | 10 | 250 | 229.16 | 2291.6 | October 20, 2021 | September 19, 2022 | Annual |
How do I validate charges in legacy and new commerce reconciliation data after migrating to new commerce?
When you switch from legacy to a new commerce subscription within a billing period, you receive two invoices.
First, you get a refund for the amount paid in advance. Rest assured; your service remains uninterrupted after migration.
To clarify this process, let's break down an example:
Suppose you purchased one license of an annual legacy Microsoft Office 365 E3 subscription on July 21, 2021, with a monthly billing plan. On January 24, 2022, you migrated to a new commerce subscription with the same billing term and plan.
Here's how the billing works:
- The legacy invoice covers charges until January 23, 2022.
- From January 24, 2022, onward, your new commerce subscription charges appear on the new commerce invoice.
Important details
Number of licenses: One
Monthly unit price of a license: USD 16
Legacy billing anniversary date: 21st day of each month
This streamlined approach ensures clarity and continuity in your billing, making your migration as smooth as possible.
Legacy license-based invoice reconciliation line items of January 2022 billing period:
ProductName | ChargeType | UnitPrice | SubscriptionStartDate | SubscriptionEndDate | BillingFrequency | ChargeStartDate | ChargeEndDate |
---|---|---|---|---|---|---|---|
Microsoft Office 365 E3 | Prorate fees when purchase | 16 | July 21, 2021 | July 2, 2022 | Monthly | January 2, 2022 | February 20, 2022 |
Legacy license-based invoice reconciliation line items of February 2022 billing period:
ProductName | ChargeType | UnitPrice | SubscriptionStartDate | SubscriptionEndDate | BillingFrequency | ChargeStartDate | ChargeEndDate |
---|---|---|---|---|---|---|---|
Microsoft Office 365 E3 | Prorate fees when purchase | 16 | July 21, 2021 | July 21/2022 | Monthly | February 21/2022 | March 20, 2022 |
Microsoft Office 365 E3 | Cancel fee | -16 | July 21, 2021 | July 21/2022 | Monthly | February 21/2022 | March 20, 2022 |
Microsoft Office 365 E3 | Cancel fee | -13.93 | July 21, 2021 | July 21/2022 | Monthly | January 25, 2022 | February 20, 2022 |
New commerce invoice reconciliation line items of January 2022 billing period:
For the January billing period, charges are divided between legacy and new commerce invoices on a prorated basis.
ProductName | ChargeType | UnitPrice | EffectiveUnitPrice | SubscriptionStartDate | SubscriptionEndDate | BillingFrequency | ChargeStartDate | ChargeEndDate |
---|---|---|---|---|---|---|---|---|
Microsoft Office 365 E3 | new | 16 | 13.93 | January 25, 2022 | July 20, 2022 | Monthly | January 25, 2022 | February 20, 2022 |
Here's how your bill changes if you switch to an annual billing plan:
New commerce invoice reconciliation line items of January 2022 billing period:
ProductName | ChargeType | UnitPrice | EffectiveUnitPrice | SubscriptionStartDate | SubscriptionEndDate | BillingFrequency | ChargeStartDate | ChargeEndDate |
---|---|---|---|---|---|---|---|---|
Microsoft Office 365 E3 | new | 192 | 93.10 | January 25, 2022 | July 20, 2022 | January 25, 2022 | July 20, 2022 |
When you switch to a new annual billing term and make an upfront payment during migration, you see these line items.
New commerce invoice reconciliation line items of January 2022 billing period:
ProductName | ChargeType | UnitPrice | EffectiveUnitPrice | SubscriptionStartDate | SubscriptionEndDate | BillingFrequency | ChargeStartDate | ChargeEndDate |
---|---|---|---|---|---|---|---|---|
Microsoft Office 365 E3 | new | 192 | 192 | January 25, 2022 | January 24, 2023 | January 25, 2022 | January 24, 2023 |
When you switch to a new annual billing term and a monthly billing plan during migration, you see these line items.
New commerce invoice reconciliation line items of January 2022 billing period:
ProductName | ChargeType | UnitPrice | EffectiveUnitPrice | SubscriptionStartDate | SubscriptionEndDate | BillingFrequency | ChargeStartDate | ChargeEndDate |
---|---|---|---|---|---|---|---|---|
Microsoft Office 365 E3 | new | 16 | 16 | January 25, 2022 | January 24, 2023 | Monthly | January 25, 2022 | February 24, 2022 |
Embrace this opportunity to streamline your financial planning and maximize your resources.
How to verify the license-based subscription transfer between partners in the reconciliation data?
To ensure smooth verification of license-based subscription transfers, follow these steps in the reconciliation data for each partner. For more information about the transfer, see Transfer new commerce license-based subscriptions from one transacting CSP partner to another.
Check subscription cancellation and repurchase: The transfer process cancels the subscription with the source or original partner and repurchases it for the target or new partner. The subscription IDs change post-transfer.
Maintain subscription properties: The subscription retains its properties upon transfer. For instance, if the subscription was set to autorenewal, it continues to renew automatically with the target partner.
Billing term and plan unchanged during transfer: The existing billing term and plan remain the same throughout the transfer. For example, if the source partner had an annual subscription with monthly billing and transferred it after five months, the target partner should continue the remaining seven months with monthly payments.
Subscription cancellation for source partner: The subscription appears as canceled for the source partner. In their reconciliation data, the
ChargeType
should be listed as "cancelImmediate."Consistent subscription dates for source partner: The
SubscriptionStartDate
andSubscriptionEndDate
remain unchanged. For instance, if the source partner bought an annual subscription on May 10, 2024, with a monthly billing plan, theSubscriptionStartDate
would be May 10, 2024, and theSubscriptionEndDate
would be May 9, 2025. These dates remain unchanged even after the transfer.Prorated charges and transfer date: The transfer date becomes the
OrderDate
for the canceled subscription, with prorated charges based on the billing plan and transfer date. If the subscription was transferred on November 1, 2024, the effective cancellation date is the same, and refunds apply from November 1, 2024, to November 9, 2024. Verify charges using theChargeStartDate
andChargeEndDate
attributes.Target partner's subscription and charges start date: For the target partner, the subscription and charges begin on the transfer date. Check their reconciliation data for the
ChargeStartDate
andSubscriptionStartDate
, both of which should be November 1, 2024, with theSubscriptionEndDate
as May 9, 2025.Prorated first bill for the target partner: The first bill for the target partner is prorated based on the billing plan, running from November 1, 2024, to November 9, 2024. Subsequent bills follow the regular monthly cycle from November 10, 2024, to December 9, 2024, and continue until May 9, 2025.
By following these steps, you ensure accurate verification of subscription transfers between partners, maintaining consistency and transparency in your reconciliation data.
Source partner's reconciliation data:
Recon | PartnerId | CustomerName | OrderDate | ProductName | ChargeType | UnitPrice | BillableQuantity | Subtotal | TaxTotal | Total | Currency | SubscriptionId | ChargeStartDate | ChargeEndDate | EffectiveUnitPrice | SubscriptionStartDate | SubscriptionEndDate |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
First billing period | 11111111-aaaa-11aa-aa11-111111111111 | Contoso | May 10, 2024 | Microsoft 365 E3 | new | 45.6 | 3 | 136.8 | 0 | 136.8 | USD | 8691daa7-4760-4b4a-c193-8c1755b44ab5 | May 10, 2024 | Jun 09, 2024 | 45.6 | May 10, 2024 | May 09, 2025 |
Billing period before the transfer | 11111111-aaaa-11aa-aa11-111111111111 | Contoso | Oct 10, 2024 | Microsoft 365 E3 | cycleCharge | 45.6 | 3 | 136.8 | 0 | 136.8 | USD | 8691daa7-4760-4b4a-c193-8c1755b44ab5 | Oct 10, 2024 | Nov 09, 2024 | 45.6 | May 10, 2024 | May 09, 2025 |
Billing period after the transfer | 11111111-aaaa-11aa-aa11-111111111111 | Contoso | Nov 01, 2024 | Microsoft 365 E3 | cancelImmediate | 45.6 | 3 | –45.6 | 0 | –45.6 | USD | 8691daa7-4760-4b4a-c193-8c1755b44ab5 | Nov 01, 2024 | Nov 09, 2024 | –15.2 | May 10, 2024 | May 09, 2025 |
Target partner's reconciliation data:
Recon | PartnerId | CustomerName | OrderDate | ProductName | ChargeType | UnitPrice | BillableQuantity | Subtotal | TaxTotal | Total | Currency | SubscriptionId | ChargeStartDate | ChargeEndDate | EffectiveUnitPrice | SubscriptionStartDate | SubscriptionEndDate |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Billing period after the transfer | 22222222-bbbb-22bb-bb22-222222222222 | Contoso | Nov 01, 2024 | Microsoft 365 E3 | new | 45.6 | 3 | 45.6 | 0 | 45.6 | USD | 5d3a7501-3b4a-4012-db07-ebc4192985b7 | Nov 01, 2024 | Nov 09, 2024 | 15.2 | Nov 01, 2024 | May 09, 2025 |
Next billing period | 22222222-bbbb-22bb-bb22-222222222222 | Contoso | Nov 10, 2024 | Microsoft 365 E3 | cycleCharge | 45.6 | 3 | 136.8 | 0 | 136.8 | USD | 5d3a7501-3b4a-4012-db07-ebc4192985b7 | Nov 10, 2024 | Dec 09, 2024 | 45.6 | Nov 01, 2024 | May 09, 2025 |