Partner Center billing scenarios for one-time and select recurring purchases—new commerce experience
Appropriate roles: Admin agent | Billing admin | Helpdesk agent | Sales agent
For a list of common billing scenarios, see Common billing scenarios for legacy CSP program partners working in Partner Center.
What is an NCE billing cycle or billing period?
A new commerce experience (NCE) billing cycle, or billing period, is one full calendar month. Any product purchased within a calendar month should be invoiced based on the billing term and plan chosen at the time of purchase.
Invoices and reconciliation files become available at Partner Center or via APIs between the sixth and eighth days of the following month. For example, the billing cycle for January is from January 1 to 31. Your January invoice and reconciliation file becomes available between February 6 and 8.
What is an NCE charge cycle?
An NCE charge cycle is the duration for which the product is invoiced. A charge cycle doesn’t coincide with the billing period or with a calendar month. It’s determined by the date that you purchased the product and the frequency with which you make payments.
For example, assume that you purchased a Microsoft Office product with an annual billing term and a monthly billing plan on February 15, 2022. The charges for this product would appear on your February invoice and reconciliation file, from February 15, 2022, to March 14, 2022, indicating that the charge cycle for this product is February 15 to March 14.
The charge cycle for each product varies and is determined by when you purchased the product and your payment frequency.
Important
It is possible to co-terminate one subscription with another or to align the charge cycle with a calendar month. You can find more details in the article Align subscription end dates.
How are one-time and recurring charges calculated?
Important
When reconciling, the billing lines are Charge Start Date, Charge End Date, Effective Unit Price, Billable Quantity, Billing Frequency, Subscription Start Date, Subscription End Date, and Amount.
You can find an explanation of these attributes in the article CSP one-time purchase reconciliation file fields.
As an example, assume that you purchased 10 licenses (10 seats) of a subscription to Microsoft 365 Business Standard on June 18. The unit price is EUR10.08, and the subscription has a monthly billing term and a monthly billing plan.
The following table shows the billing line that would appear on the reconciliation file for the June billing cycle, which you would receive in July. You would never see this transaction again unless the subscription was renewed.
| Order Date | Charge Start Date | Charge End Date | Charge Type | Effective Unit Price | Billable Quantity | Amount |
|---|---|---|---|---|---|---|
| June 18, 2021 | June 18, 2021 | July 17, 2021 | new | 10.08 | 10 | 100.8 |
If you renewed the subscription, you would see a new transaction with a ChargeType of "renew," a ChargeStartDate of July 18, 2021, and ChargeEndDate of August 17, 2021:
| Order Date | Charge Start Date | Charge End Date | Charge Type | Effective Unit Price | Billable Quantity | Amount |
|---|---|---|---|---|---|---|
| July 18, 2021 | July 18, 2021 | August 17, 2021 | renew | 10.08 | 10 | 100.8 |
The following billing line shows what you would see if you purchased the previous subscription with the same monthly billing plan but with a one-year billing term instead of a one-month billing term. In this case, you would see EUR100.8 charges with the same values as above, but with a ChargeType of cycleCharge until the June 2022 billing cycle.
| Order Date | Charge Start Date | Charge End Date | Charge Type | Effective Unit Price | Billable Quantity | Amount |
|---|---|---|---|---|---|---|
| July 18, 2021 | July 18, 2021 | August 17, 2021 | cycleCharge | 10.08 | 10 | 100.8 |
If you prepaid the subscription, only one billing line would appear in the June billing cycle reconciliation file, which you'd receive in July.
| Order Date | Charge Start Date | Charge End Date | Charge Type | Effective Unit Price | Billable Quantity | Total |
|---|---|---|---|---|---|---|
| June 18, 2021 | June 18, 2021 | June 17, 2022 | new | 120.96 | 10 | 1,209.6 |
How do I differentiate between one-time and recurring payments in a reconciliation file
One-time payment:
Charge Start Date and Charge End Date are the same as the Subscription Start Date and Subscription End Date.
Billing Frequency is blank.
Recurring payment or billing plan:
- Charge Start Date and Charge End Date are separated by one month.
- Billing Frequency says "Monthly."
- Charge Start Date and Charge End Date are separated by one year.
- Billing Frequency says "Annual."
How do I determine the product category?
Reconciliation data doesn’t include the product category as a first-class attribute. You can use the following methods to determine the product category. This process is a workaround and may not accurately analyze a corner-case, unique scenario. However, it can help you define the product category for most transactions.
| Condition | Product Category |
|---|---|
| “PublisherName” attribute says “Microsoft” or “Microsoft Corporation” | First-party product |
| “PublisherName” column says something other than “Microsoft” or “Microsoft Corporation,” and “PublisherID” has a value. | Third-party product |
| “TermAndBillingCycle” attribute has the keyword “Reservation.” | Azure reservation |
| “TermAndBillingCycle” attribute has the keyword “Subscription.” This attribute doesn't always include the keyword. In that case, use the SKU name, such as "SQL Server," "Windows Server," and so on. |
Software subscription |
| “TermAndBillingCycle” attribute has the phrase “one-month," "one-year," or "three-year.” | License-based |
| “TermAndBillingCycle” attribute is blank, and “ChargeEndDate” column is empty. | Perpetual software |
| SubscriptionDescription says “Azure plan." | Azure plan |
| Remaining conditions | After eliminating all of the preceding product categories, the remaining category should be referred to as an Azure plan. (Partners can assign unique subscription names.) |
How do I find the billing term in a reconciliation file?
The difference between the Subscription Start Date and Subscription End Date is the billing term. You can also look for a suitable description in the TermAndBillingCycle attribute.
See the following examples:
| TermAndBillingCycle | SubscriptionStartDate | SubscriptionEndDate |
|---|---|---|
| One-year commitment for monthly/yearly billing | April 15, 2021 | April 14, 2022 |
| One-year term duration | April 22, 2021 | April 2, 2022 |
| One-month commitment for monthly billing | April 14, 2021 | May 13, 2021 |
| Three-year commitment for monthly/yearly billing | May 25, 2021 | May 24, 2024 |
How do monthly term subscriptions expire
Here's how monthly subscriptions expire when you buy near the end of a month:
Expiration when you buy on the last day of a month
If you buy on the last day of a month, your subscription will end on the:
30th day of a month that has 31 days
29th day of the month that has 30 days
28th day of February on a leap year
27th day of February in non-leap years
Remember that these are separate purchases made on different dates, and they’re unrelated.
The dates in the reconciliation file are in UTC.
| Billing Term | Order Date | Charge Type | Subscription Start Date | Subscription End Date | Renew Date | Charge Start Date | Charge End Date |
|---|---|---|---|---|---|---|---|
| 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 |
If you purchase a subscription with an annual billing term and a monthly billing plan, the charge cycle should look like this:
| Billing Term | Billing Plan | Order Date | Charge Type | Subscription Start Date | Subscription End Date | Renew Date | Charge Start Date | Charge End Date |
|---|---|---|---|---|---|---|---|---|
| Annual | Monthly | 31-Jan-21 | new | 31-Jan-21 | 30-Jan-22 | 31-Jan-22 | 31-Jan-21 | 27-Feb-21 |
| Annual | Monthly | 28-Feb-21 | cycleCharge | 31-Jan-21 | 30-Jan-22 | 31-Jan-22 | 28-Feb-21 | 30-Mar-21 |
| Annual | Monthly | 31-Mar-21 | cycleCharge | 31-Jan-21 | 30-Jan-22 | 31-Jan-22 | 31-Mar-21 | 29-Apr-21 |
| Annual | Monthly | 30-Apr-21 | cycleCharge | 31-Jan-21 | 30-Jan-22 | 31-Jan-22 | 30-Apr-21 | 30-May-21 |
| Annual | Monthly | 31-May-21 | cycleCharge | 31-Jan-21 | 30-Jan-22 | 31-Jan-22 | 31-May-21 | 29-Jun-21 |
| Annual | Monthly | 30-Jun-21 | cycleCharge | 31-Jan-21 | 30-Jan-22 | 31-Jan-22 | 30-Jun-21 | 30-Jul-21 |
| Annual | Monthly | 31-Jul-21 | cycleCharge | 31-Jan-21 | 30-Jan-22 | 31-Jan-22 | 31-Jul-21 | 30-Aug-21 |
| Annual | Monthly | 31-Aug-21 | cycleCharge | 31-Jan-21 | 30-Jan-22 | 31-Jan-22 | 31-Aug-21 | 29-Sep-21 |
| Annual | Monthly | 30-Sep-21 | cycleCharge | 31-Jan-21 | 30-Jan-22 | 31-Jan-22 | 30-Sep-21 | 30-Oct-21 |
| Annual | Monthly | 31-Oct-21 | cycleCharge | 31-Jan-21 | 30-Jan-22 | 31-Jan-22 | 31-Oct-21 | 29-Nov-21 |
| Annual | Monthly | 30-Nov-21 | cycleCharge | 31-Jan-21 | 30-Jan-22 | 31-Jan-22 | 30-Nov-21 | 30-Dec-21 |
| Annual | Monthly | 31-Dec-21 | cycleCharge | 31-Jan-21 | 30-Jan-22 | 31-Jan-22 | 31-Dec-21 | 30-Jan-22 |
Expiration when you buy on the day before the last day of a month
If you buy on the day before the last day of a month, your subscription will end on the:
29th day of a month that has 31 days
28th day of a month that has 30 days
Remember that these are separate purchases made on different dates, and they’re unrelated.
The dates in the reconciliation file are in UTC.
| Billing Term | Order Date | Charge Type | Subscription Start Date | Subscription End Date | Renew Date | Charge Start Date | Charge End Date |
|---|---|---|---|---|---|---|---|
| Monthly | January 30, 2021 | new | January 30, 2021 | February 27, 2021 | February 28, 2021 | January 30, 2021 | February 27, 2021 |
| Monthly | February 27, 2021 | new | February 27, 2021 | March 26, 2021 | March 27, 2021 | February 27, 2021 | March 26, 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 |
If you purchase a subscription with an annual billing term and a monthly billing plan, the charge cycle should look like this:
| Billing Term | Billing Plan | Order Date | Charge Type | Subscription Start Date | Subscription End Date | Renew Date | Charge Start Date | Charge End Date |
|---|---|---|---|---|---|---|---|---|
| Annual | Monthly | 30-Jan-21 | new | 30-Jan-21 | 29-Jan-22 | 30-Jan-22 | 30-Jan-21 | 26-Feb-21 |
| Annual | Monthly | 27-Feb-21 | cycleCharge | 30-Jan-21 | 29-Jan-22 | 30-Jan-22 | 27-Feb-21 | 29-Mar-21 |
| Annual | Monthly | 30-Mar-21 | cycleCharge | 30-Jan-21 | 29-Jan-22 | 30-Jan-22 | 30-Mar-21 | 28-Apr-21 |
| Annual | Monthly | 29-Apr-21 | cycleCharge | 30-Jan-21 | 29-Jan-22 | 30-Jan-22 | 29-Apr-21 | 29-May-21 |
| Annual | Monthly | 30-May-21 | cycleCharge | 30-Jan-21 | 29-Jan-22 | 30-Jan-22 | 30-May-21 | 28-Jun-21 |
| Annual | Monthly | 29-Jun-21 | cycleCharge | 30-Jan-21 | 29-Jan-22 | 30-Jan-22 | 29-Jun-21 | 29-Jul-21 |
| Annual | Monthly | 30-Jul-21 | cycleCharge | 30-Jan-21 | 29-Jan-22 | 30-Jan-22 | 30-Jul-21 | 29-Aug-21 |
| Annual | Monthly | 30-Aug-21 | cycleCharge | 30-Jan-21 | 29-Jan-22 | 30-Jan-22 | 30-Aug-21 | 28-Sep-21 |
| Annual | Monthly | 29-Sep-21 | cycleCharge | 30-Jan-21 | 29-Jan-22 | 30-Jan-22 | 29-Sep-21 | 29-Oct-21 |
| Annual | Monthly | 30-Oct-21 | cycleCharge | 30-Jan-21 | 29-Jan-22 | 30-Jan-22 | 30-Oct-21 | 28-Nov-21 |
| Annual | Monthly | 29-Nov-21 | cycleCharge | 30-Jan-21 | 29-Jan-22 | 30-Jan-22 | 29-Nov-21 | 29-Dec-21 |
| Annual | Monthly | 30-Dec-21 | cycleCharge | 31-Jan-21 | 30-Jan-22 | 30-Jan-22 | 30-Dec-21 | 29-Jan-22 |
How are licenses (seats) added or removed?
Assume that you purchased 10 licenses (10 seats) of a Microsoft 365 Business Standard subscription on June 18 for a unit price EUR10.08 and with a monthly billing term and a monthly billing plan. Later, on June 20, you added two more licenses.
The following billing lines will appear on the July reconciliation file for the June billing cycle:
| Order Date | Charge Type | Unit Price | Charge Start Date | Charge End Date | Effective Unit Price | Billable Quantity | 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 |
When adding or removing seats, internal wipe (refund) and recreate (readjust) operations are triggered to split the event into two transactions.
- The first transaction is a negative amount (a refund) for the purchased quantity for the remainder of the charge cycle.
- The second transaction is a positive amount (a charge) for the updated quantity for the same period.
The actual charges are calculated using the following formula, based on the Effective Unit Price.
Effective Unit Price = Unit Price / Total Days in Charge Cycle * Number of Used or Refundable Days in Charge Cycle (the number of days between Charge Start Date and Charge End Date)
Note
The length of the purchase month determines the number of billable days in a monthly charge cycle. For example, the billable days in June are 30 and 31 in August. An annual charge cycle has 365 or 366 (leap year) billable days.
Total = Effective Unit Price * Billable Quantity
In the following example, the first transaction shows an EUR94 refund of 10 licenses for 28 days from June 20, 2021 to July 17, 2021.
Refund amount = Effective Unit Price (10.08 / 30 \* 28) \* Billable Quantity (10) = 94.08
The adjusted transaction shows a EUR112.8 cost of 12 licenses for 28 days from June 20, 2021 to July 17, 2021.
Cost = Effective Unit Price (10.08 / 30 \* 28) \* Billable Quantity (12) = 112.89
Assume you removed four seats or licenses on June 20 (still within seven days). We'll continue in the same manner as before to refund and recalculate charges based on the reduced seat count. The following billing lines will appear in the reconciliation file.
| Order Date | Charge Type | Unit Price | Charge Start Date | Charge End Date | Effective Unit Price | Billable Quantity | 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 transaction shows a EUR112.89 refund of 12 licenses for 28 days from June 20, 2021 to July 17, 2021.
Refund amount = Effective Unit Price (10.08 / 30 \* 28) \* Billable Quantity (12) = 112.89
The adjusted transaction shows a EUR75.26 cost of eight licenses for 28 days from June 20, 2021 to July 17, 2021.
Cost = Effective Unit Price (10.08 / 30 \* 28) \* Billable Quantity (8) = 75.26
How do I keep track of multiple seat adjustments within a billing period and calculate the total number of seats?
Assume that on March 5, 2022, you purchased 10 Microsoft 365 Business Standard seats for your customer, Contoso. You changed the subscription several times, including adding five seats on March 7 and 10 seats on March 10. You later removed two seats on March 12 and three more on March 14 before adding 10 seats on March 25. After all of these adjustments, you need to know how many seats you have at the end of the March billing period.
Your changes aren't rendered in the same chronological order when you download the reconciliation file from the portal or access the data via API.
To rearrange transactions in chronological order and logically connect them:
Find the subscription ID from when the subscription was first purchased. To filter the transaction, use the following criteria:
a. The order date is March 5, 2022.
b. The charge type should be “new.”
c. The product or SKU is “Microsoft 365 Business Standard.”
Sort the order date, from oldest to newest, to arrange the seat addition and removal events in chronological order.
Each add-or-remove-seat event generates two transactions. "ReferenceId" connects the two transactions. For more information, see How are licenses (seats) added or removed later in this article.
Finally, the last transaction with a positive charge shows the total number of subscription seats for the billing period after arranging the transactions. So the total number of seats for this subscription in the March billing period is 30.
See the following table to correlate the previously mentioned events.
| 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 |
How are prorated refunds calculated if I cancel within the first seven days of purchasing?
Assume that you purchased 10 licenses (10 seats) of a Microsoft 365 Business Standard subscription on July 15 for a unit price of EUR10.08, and with a monthly billing term and a monthly billing plan. Later, on July 17, you canceled the subscription.
The following billing line will appear on the August reconciliation file for the July billing cycle:
| Order Date | Charge Type | Unit Price | Charge Start Date | Charge End Date | Effective Unit Price | Billable Quantity | 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 |
When you cancel a subscription within the allowed window, you receive a prorated refund for the unused billing days in the charge cycle from the day of cancellation.
The first transaction shows a EUR100.8 cost for 10 licenses from July 15, 2021, to August 14, 2021.
Cost = Effective Unit Price (10.08 / 31 \* 31) \* Billable Quantity (10) = 100.8
The second transaction shows a EUR94.2 refund for cancellation from July 17, 2021, to August 14, 2021.
Refund amount = (Effective Unit Price (10.08 / 31 \* 29) \* Billable Quantity (10) = 94.2
Important
You will receive a full refund if you cancel subscriptions or reduce seats (licenses) within the first 24 hours of purchase or renewal.
How should I reconcile and link upgraded transactions?
There are two types of upgrades:
- Full upgrade, in which you upgrade every license (seat) in the subscription to an advanced subscription
- Partial upgrade, in which you upgrade less than every license (seat) in to an advanced subscription
After the upgrade, you can correlate transactions that have occurred during the upgrade in your reconciliation file.
Full upgrade
Assume you purchased 300 licenses (300 seats) of a Microsoft 365 Business Standard subscription on June 18 for a unit price of EUR10.08, and with a monthly billing term and a monthly billing plan. Later, on June 25, you upgraded the subscription to Office 365 E1 with a unit price of EUR6.43. The following billing lines will appear on the July reconciliation file for the June billing cycle.
When you partially upgrade a subscription, the cost of your base subscription is adjusted as negative charges to reflect the upgrade for the remaining charge cycle. You're also charged for the upgraded subscription for the same period.
The actual charges are calculated using the formula below based on the Effective Unit Price.
Effective Unit Price = Unit Price / Total Days in Charge Cycle * Number of Used or Refundable Days in Charge Cycle (the number of days between Charge Start Date and Charge End Date)
Total = Effective Unit Price * Billable Quantity
| Order Date | Product | Charge Type | Unit Price | Charge Start Date | Charge End Date | Effective Unit Price | Billable Quantity | Total | Subscription ID | Reference ID |
|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The first line item shows charges for the Microsoft 365 Business Standard subscription if you used it for the whole month.
The second line shows an EUR2,316 refund of the same subscription because you haven’t used it from June 25, 2021, to July 17, 2021.
Refund = Effective Unit Price (10.08 / 30 \* 23) \* Billable Quantity (300) = 2,316.
The third line shows an EUR1,476 cost of the upgraded subscription for the remainder of the charge cycle from June 25, 2021, to July 17, 2021.
Cost = Effective Unit Price (6.43 / 30 \* 23) \* Billable Quantity (300) = 1,476.
How do I calculate the total seats for the base and upgraded subscriptions in a billing period for a full upgrade?
Your changes aren't rendered in the same chronological order when you download the reconciliation file from the portal or access the data via API. You’ll need to rearrange them manually or programmatically to connect them. The steps below will show you how to rearrange these transactions in chronological order and logically connect them:
Find the subscription ID from when the subscription was first purchased. To filter the transaction, use the following criteria:
a. The order date is June 18, 2021.
b. The charge type should be “new.”
c. The product or SKU is “Microsoft 365 Business Standard.”
Sort the order date, from oldest to newest, to arrange the seat addition and removal events in chronological order.
The base and upgraded subscription will have the charge type “convert.”
a. "ReferenceId" and “SubscriptionID” connect these two transactions. For more information, see how do I link upgraded transactions.
Finally, the upgraded subscription's seat count will be displayed in the most recent transaction with the charge type "convert." The base subscription seat count will be zero because the subscription has been upgraded to a higher version. So the total number of seats for the “Office 365 E1” subscription in the March billing period is 300.
Note
The “convert” and “moveQuantity” charge types represent the upgrade transactions. The only difference is that for “convert,” a new upgraded subscription is purchased, whereas for “moveQuantity,” the upgraded subscription already exists.
Partial upgrade
Assume you purchased 300 licenses (300 seats) of a Microsoft 365 Business Standard subscription on June 18 for a unit price of EUR10.08, and with a monthly term and a monthly billing plan. Later, on June 25, you upgraded only 100 seats or licenses to Office 365 E1 for EUR6.43 unit price. The following billing lines will appear on the July reconciliation file for the June billing cycle.
When you partially upgrade a subscription, the cost of your base subscription is adjusted as negative charges to reflect the licenses upgraded for the remaining charge cycle. You're also charged for the upgraded subscription for the same period
| Order Date | Product | Charge Type | Unit Price | Charge Start Date | Charge End Date | Effective Unit Price | Billable Quantity | Total | Subscription ID | Reference ID |
|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The first line item shows charges for the Microsoft 365 Business Standard subscription if you used it for the whole month. You’ve upgraded 100 seats to a higher version on June 25.
The second line shows an EUR2,316 refund of 100 licenses of the base subscription because you haven’t used it from June 25, 2021, to July 17, 2021.
Refund = Effective Unit Price (10.08 / 30 \* 23) \* Billable Quantity (100) = 772
The third line shows an EUR1,476 cost of the upgraded subscription for the remainder of the charge cycle from June 25, 2021, to July 17, 2021.
Cost = Effective Unit Price (6.43 / 30 \* 23) \* Billable Quantity (100) = 492.
Note
The refund amount shown in the reconciliation data for the base product is an internal process that adjusts the base subscription’s cost for the remainder of the charge cycle.
How do I calculate the total seats for the base and upgraded subscriptions in a billing period for a partial upgrade?
Your changes aren't rendered in the same chronological order when you download the reconciliation file from the portal or access the data via API. You’ll need to rearrange them manually or programmatically to connect them. The following steps show you how to rearrange these transactions in chronological order and logically connect them:
Find the subscription ID from when the subscription was first purchased. To filter the transaction, use the following criteria:
a. The order date is June 18, 2021.
b. The charge type should be “new.”
c. The product or SKU is “Microsoft 365 Business Standard.”
Sort the order date, from oldest to newest, to arrange the seat addition and removal events in chronological order.
The base and upgraded subscription will have the charge type “convert.”
a. "ReferenceId" and “SubscriptionID” connect these two transactions. For more information, see how do I link upgraded transactions.
Finally, the seat counts for the upgraded subscriptions will be displayed in the most recent transaction with the charge type “convert.” So the total number of seats for the Office 365 E1 subscription in the March billing period is 100. The calculation for the base subscription, “Microsoft 365 Business Standard,” on the other hand, is different. Subtract the billable quantity of the transaction with the charge type “convert” from the charge type “new.”
Note
The “convert” and “moveQuantiy” charge types represent the upgrade transactions. The only difference is that for “convert,” a new upgraded subscription is purchased, whereas for “moveQuantity,” the upgraded subscription already exists.
How do I link upgraded transactions?
You should use the base product’s SubscriptionID to find the corresponding ReferenceID, and use them to retrieve all the associated transactions. Combined with the SubscriptionID and ReferenceID, you can connect all transactions that occurred in a single upgrade event.
How do I reconcile after I convert a trial version to a paid subscription?
Assume you purchased 25 "Dynamics 365 Guides" licenses (seats) as a free trial on June 25. Typically, trial products are valid for one month, and you later pay EUR 52.61 per unit to upgrade them to a paid version. The July reconciliation file will include the following billing line for the June billing cycle:
Converting a trial product to a paid product is similar to an upgrade.
| Order Date | Charge Type | Unit Price | Charge Start Date | Charge End Date | Effective Unit Price | Billable Quantity | Product Qualifier | 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 shows no charges for the Dynamics 365 Guides subscription as a trial product. You can verify it using the ProductQualifier attribute. On the same day, you convert the subscription to a paid version. The second line should show the refund. However, because the subscription was a trial version, the cost and refund are both zero.
The third line shows an EUR1,315.25 cost for the paid version from June 25, 2021, to July 24, 2021.
Cost = Effective Unit Price (52.61 / 30 * 30) * Billable Quantity (25) = 1,315.25
How do I reconcile transactions after changing billing plans?
You can change your billing plan after the first charge cycle. Assume you bought a subscription on an annual billing plan and now want to switch to a monthly one. You can switch from a monthly billing plan to an annual billing plan after the first year, or vice versa if you purchase a monthly one.
Let’s look at a few examples to see how you can check them in your reconciliation data.
You purchased 10 Dynamics 365 Commerce licenses on September 20, 2021, with a three-year billing term and an annual billing plan. Later, you changed the billing plan to a monthly one, and it won’t take effect until September 19, 2022, the end of the annual charge cycle. The monthly charge will appear in the September 2022 reconciliation data. The “changeBillingPlan” text in the “ChargeCycle” attribute of the reconciliation data describes the behavior.
Note
Switching billing plans doesn’t affect the subscription validity (start and end dates).
Annual to monthly:
| Charge Type | Quantity | Unit Price | Effective Unit Price | Total | Charge Start Date | Charge End Date | Billing Frequency |
|---|---|---|---|---|---|---|---|
| new | 10 | 250 | 250 | 2,500 | September 20, 2021 | September 19, 2022 | Annual |
| changeBillingPlan | 10 | 20 | 20 | 200 | September 20, 2022 | October 19, 2022 | Monthly |
Monthly to annual:
| Charge Type | Quantity | Unit Price | Effective Unit Price | Total | Charge Start Date | Charge End Date | Billing Frequency |
|---|---|---|---|---|---|---|---|
| new | 10 | 20 | 20 | 200 | September 20, 2021 | October 19, 2021 | Monthly |
| changeBillingPlan | 10 | 250 | 229.16 | 2291.6 | October 20, 2021 | September 19, 2022 | Annual |
How do I validate charges in legacy and NCE reconciliation data after migrating to NCE?
If you migrate to new commerce during a legacy charge cycle, your charges will be split between two invoices. Any prepaid prorated charges are refunded on the next legacy invoice after the migration. New charges are prorated and added to the new commerce invoice for the remainder of the subscription's validity.
To get a better understanding, consider the following examples:
Assume that you purchased a legacy Microsoft Office 365 E3 subscription on July 21, 2021, with an annual billing term and a monthly billing plan. However, on January 24, 2022, you migrated the subscription to NCE with the same billing term and billing plan. For that scenario, let’s take a look at how your legacy and new commerce invoice reconciliation files will display the charges.
Consider the following points
Purchased licenses (seats): One
Price of a license/seat for a month: USD16
Legacy billing anniversary date: The 21st day of each month
Legacy monthly reconciliation file of January 2022:
| Subscription Name | Charge Type | Unit Price | Subscription Start Date | Subscription End Date | Billing Cycle | Charge Start Date | Charge End Date |
|---|---|---|---|---|---|---|---|
| Microsoft Office 365 E3 | Prorate fees when purchase | 16 | July 21, 2021 | July 2, 2022 | Monthly | January 2, 2022 | February 20, 2022 |
Legacy monthly reconciliation file of February 2022:
| Subscription Name | Charge Type | Unit Price | Subscription Start Date | Subscription End Date | Billing Cycle | Charge Start Date | Charge End Date |
|---|---|---|---|---|---|---|---|
| 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 |
NCE monthly reconciliation file of January 2022:
In January, the charges will be prorated after the migration.
| Subscription Name | Charge Type | Unit Price | Effective Unit Price | Subscription Start Date | Subscription End Date | Term & Billing Cycle | Billing Frequency | Charge Start Date | Charge End Date |
|---|---|---|---|---|---|---|---|---|---|
| Microsoft Office 365 E3 | new | 16 | 15.42 | January 25, 2022 | July 20, 2022 | Annual | Monthly | January 25, 2022 | February 20, 2022 |
If you switched the billing plan to annual while migrating, the file would look like this.
NCE monthly reconciliation file of January 2022:
| Subscription Name | Charge Type | Unit Price | Effective Unit Price | Subscription Start Date | Subscription End Date | Term & Billing Cycle | Billing Frequency | Charge Start Date | Charge End Date |
|---|---|---|---|---|---|---|---|---|---|
| Microsoft Office 365 E3 | new | 192 | 95.21 | January 25, 2022 | July 20, 2022 | Annual | January 25, 2022 | July 20, 2022 |
If you changed the billing plan to annual and the billing period to annual while migrating, the file would look like this.
NCE monthly reconciliation file of January 2022:
| Subscription Name | Charge Type | Unit Price | Effective Unit Price | Subscription Start Date | Subscription End Date | Term & Billing Cycle | Billing Frequency | Charge Start Date | Charge End Date |
|---|---|---|---|---|---|---|---|---|---|
| Microsoft Office 365 E3 | new | 192 | 192 | January 25, 2022 | January 24, 2023 | Annual | January 25, 2022 | January 24, 2023 |
If you changed the billing plan to monthly and the billing period to annual while migrating, the file would look like this.
NCE monthly reconciliation file of January 2022:
| Subscription Name | Charge Type | Unit Price | Effective Unit Price | Subscription Start Date | Subscription End Date | Term & Billing Cycle | Billing Frequency | Charge Start Date | Charge End Date |
|---|---|---|---|---|---|---|---|---|---|
| Microsoft Office 365 E3 | new | 16 | 16 | January 25, 2022 | January 24, 2023 | Annual | Monthly | January 25, 2022 | February 24, 2023 |