Understanding the types of billing in Partner Center

Applies to

  • Partner Center
  • Partners in the CSP program

Depending on the types of products you purchase for your customers, you might have different billing periods and be billed on different days of the same month. This article explains what changed starting March 1, 2019, and how the changes will impact you.

Billing for recurring charges

The billing experience for recurring charges of license-based and usage-based subscriptions is not changing. We’ll continue to bill you on the day of the month you selected as your billing date, and your billing period will continue to be the month prior to that date. If you selected the 15th day of the month for your billing date, you’ll be billed for all activity from the 15th of one calendar month to the 14th of the next calendar month. Invoices and reconciliation files are generally available 2-4 days after your billing date.

As before, we’ll bill you for these products in the currency for the country/region you’re located in, regardless of the location of the customer you sold the product to.

Billing for one-time and select recurring charges

Starting March 1, 2019, we introduced a new billing experience for recurring and one-time charges for Microsoft and third-party ISV products.

For these products, the billing period starts on the first day of the calendar month and ends on the last day of the calendar month. We’ll make your invoice available on the 8th day of the following month.

In other words, any transactions you make between May 1 and May 31, 2019 will appear on your invoice June 8. Any transactions you make between June 1 and June 30, 2019 will appear on your invoice July 8. You might get billed for recurring and one-time purchases on the same invoice.

You can also check your account balance/bill whenever you want (for example, between May 1 and June 7) and see the latest account activity without having to wait for the invoice. Note that when we post your bill on the 8th, it will include taxes and any other applicable charges and credits, so the final amount might differ from what you see during the billing period.

You’ll access your invoices the same way you do now, either in Partner Center or by API. They’ll appear before midnight UTC on the 8th day of the month.

Billing experience Product type(s) Billing date Billing period Billing currency Current activity available?
Recurring charges for license-based and usage-based subscriptions All products from the online services catalog. Examples include Office 365, Microsoft 365, Azure Active Directory, Azure (pay-as-you-go), Dynamics 365, PowerBI Pro The date you selected when you created your Partner Center account The month prior to your billing date. The currency of the country/region you’re located in. For example, if your company is located in the United Kingdom, we’ll bill you in British pounds sterling (GBP). If your company is located in India, we’ll bill you in India Rupees (INR). No
Recurring and one-time charges for Microsoft and third-party ISVs products All SaaS subscriptions, Azure reservations, and software (perpetual and subscription-based) products offered by Microsoft and third-party ISVs. See available products in the Marketplace. Examples include SUSE Linux software (software subscription), Windows Server 2019 Essentials (perpetual software), Azure ISV SaaS product subscription. The 8th day of each month From the first day to the last day of each calendar month The currency of the country/region your customer is located in. This means you’ll receive separate invoices and reconciliation files in the currency of the country/region each customer you sold to in the billing period. Yes

Billing scenarios for one-time and recurring purchases

Scenario 1 – Purchase a subscription and then add a seat on the same day

In Scenario 1, you purchase a subscription on June 11 at a unit price of $4. Later that same day you purchase another of the same subscription at the same price.

The recon file will include the following:

  • $4 bill for service period June 10 – July 9.
  • $-4.00 prorated rebill for service period June 11 – June 11. This is the period when you had 1 license. Calculation = (monthly price/total days in service period) x days in prorated service period x number of licenses = (4/30) x 30 x 1 = 4.00.
  • $8.00 prorated rebill for service period June 10 – July 9. This is the period when you had 2 licenses. Calculation = (4/30) x 30 x 2 = 8.00.
Purchase date Charge start Charge end Unit price Quantity Amount Charge type
6/11/2019 6/10/2019 7/09/2019 $4 1 $4 New
6/11/2019 6/10/2019 7/09/2019 $4 1 -$4 addQuantity
6/11/2019 6/10/2019 7/09/2019 $4 2 $8 addQuantity

Scenario 2 – Purchase a subscription and then add more later

In Scenario 2, you purchase a subscription on June 11 at a unit price of $4, and on June 12 you purchase another subscription for the same product at the same price.

The recon file will include the following:

  • $4 bill for service period June 10 – July 9.
  • $-3.87 prorated rebill for service period June 11 – June 12. This is the period when you had 1 license. Calculation = (monthly price/total days in service period) x days in prorated service period x number of licenses = (4/30) x 29 x 1 = 3.87.
  • $7.74 prorated rebill for service period June 12 – July 9. This is the period when you had 2 licenses. Calculation = (4/30) x 29 x 2 = 7.74.
Purchase date Charge start Charge end Unit price Quantity Amount Charge type
6/11/2019 (you have one license) 6/10/2019 7/09/2019 $4 1 $4 New
6/12/2019 6/10/2019 7/09/2019 $4 1 -$3.87 addQuantity
6/12/2019 6/10/2019 7/09/2019 $4 2 $7.74 addQuantity

Scenario 3 – Purchase a subscription and then remove a seat on the same day

In Scenario 3, you purchase two subscriptions for the same product on June 11 at a unit price of $4. Later that same day you remove one of the seats.

The recon file will include the following:

  • $8 bill for two licenses for service period June 10 – July 9.
  • $-8.00 prorated rebill for service period June 11 – June 11. This is the period when you had 2 licenses. Calculation = (monthly price/total days in service period) x days in prorated service period x number of licenses = (4/30) x 30 x 2 = 8.00.
  • $4.00 prorated rebill for service period June 11 – July 9. This is the period when you had 1 license. Calculation = (4/30) x 30 x 1 = 4.00.
Purchase date Charge start Charge end Unit price Quantity Amount Charge type
6/11/2019 6/10/2019 7/09/2019 $4 2 $8 New
6/11/2019 6/10/2019 7/09/2019 $4 2 -$8 removeQuantity
6/11/2019 6/10/2019 7/09/2019 $4 1 $4 removeQuantity

Scenario 4 – Purchase a subscription and then remove seats later

In Scenario 4, you purchase 2 subscriptions on June 11 at a unit price of $4, and on June 12 you remove one of the seats.

The recon file will include the following:

  • $8 bill for service period June 10 – July 9.
  • $-7.74 prorated rebill for service period June 11 – June 12. This is the period when you had 2 licenses. Calculation = (monthly price/total days in service period) x days in prorated service period x number of licenses = (4/30) x 29 x 2 = 7.74.
  • $3.87 prorated rebill for service period June 12 – July 9. This is the period when you had 1 license. Calculation = (4/30) x 29 x 1 = 3.87.
Purchase date Charge start Charge end Unit price Quantity Amount Charge type
6/11/2019 (you have 2 licenses) 6/10/2019 7/09/2019 $4 2 $8 New
6/12/2019 6/10/2019 7/09/2019 $4 2 -$7.74 removeQuantity
6/12/2019 (you have 1 license) 6/10/2019 7/09/2019 $4 1 $3.87 removeQuantity