Common billing scenarios

Applies to

  • Partner Center
  • Partner Center for Microsoft Cloud for US Government
  • Partner Center for Microsoft Cloud Germany

This topic explains what you should expect to see on your bill after you add new subscriptions, adjust the number of licenses to a subscription, or cancel a subscription. Usage-based and license-based subscriptions are affected differently.

In this section

Usage-based billing

Usage based subscriptions are billed monthly, in arrears, on the subscription anniversary day. For example, if the subscription anniversary date is the 15th, you will be charged on January 15 for the service period December 15 – January 14. You will be charged again on February 15 for the service period January 15 – February 14, etc. The charges that are generated on the subscription anniversary day will appear on the following invoice and reconciliation file.

Usage-based subscription may be suspended at any time.

The Azure CSP Price List is published monthly and can be found on the Partner Center Sell->Pricing and Offers page. Please note prices can change daily and are reflected on the Change History tab of the Price List.

Usage charges are based on daily prices. If the price changes during the service period you will see a billing line for each prorated service period and applicable price.

License-based billing

Billing: License-based subscriptions are billed in advance on the subscription anniversary day.

Anniversary Day: The anniversary day is the day of the month you purchased the subscription. For example, if you purchased the subscription on January 15th, the anniversary day will be the 15th of each month.

Term: All license-based subscriptions have a 12-month paid term, which begins on the purchase date.

Cancellation: Subscriptions suspended in month 1 will be credited 100%. Subscriptions suspended in months 2-12 will be credited on a prorated basis.

Renewal: All license-based subscriptions auto-renew 12-months after the paid term begins.

Monthly billing scenarios

Scenario 1: New subscription

Your billing date is the 15th of each month. On January 13 you purchase a new subscription with one license for $4/month and select monthly billing. The January 15th license-based reconciliation file will contain the following billing lines:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 2/12/2018 Cycle fee 4.00 1 4.00

The February 15th license-based reconciliation file will contain the following billing line:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
2/13/2018 3/12/2018 Cycle fee 4.00 1 4.00

Scenario 2: Change license quantity

Your billing date is the 15th of each month. On January 13 you purchase a new subscription with one license for $4/month and select monthly billing. The January 15th license-based reconciliation file will contain the following billing lines:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 2/12/2018 Cycle fee 4.00 1 4.00

On February 1 you increase your license quantity from one to two. The February 15th license-based reconciliation file will contain the following billing lines:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 2/12/2018 Cycle Instance Prorate -4.00 1 4.00
1/13/2018 1/31/2018 Cycle Instance Prorate 2.45 1 2.45
2/1/2018 2/12/2018 Cycle Instance Prorate 1.55 2 3.10
2/13/2018 3/12/2018 Cycle Instance Prorate 4.00 2 8.00

Unit Price Formulas:

The monthly price is 4.00 and there are 31 days in the service period 1/13/2018 – 2/12/2018. This equates to a daily price of 0.129 (4/31).

There are 19 days in the proration period 1/13/2018 – 1/31/2018.

Proration unit price = 2.451 = 19 x 0.129

There are 12 days in the proration period 2/1/2018 – 2/12/2018.

Proration unit price = 1.54 = 12 x 0.129

Scenario 3: Suspend before 30 days

Your billing date is the 15th of each month. On January 13 you purchase a new subscription with one license for $4/month and select monthly billing. The January 15th license-based reconciliation file will contain the following billing lines:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 2/12/2018 Cycle fee 4.00 1 4.00

On February 1 you suspend subscription. The February 15th license-based reconciliation file will contain the following billing line:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 2/12/2018 Cancel Fee -4.00 1 4.00

Scenario 4: Suspend after 30 days

Your billing date is the 15th of each month. On January 13 you purchase a new subscription with one license for $4/month and select monthly billing. The January 15th license-based reconciliation file will contain the following billing lines:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 2/12/2018 Cycle Fee 4.00 1 4.00

The February 15th license-based reconciliation file will contain the following billing line:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
2/13/2018 3/12/2018 Cycle Fee 4.00 1 4.00

On March 1 you suspend subscription. The March 15th license-based reconciliation file will contain the following billing line:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
3/1/2018 3/12/2018 Cancel Fee -1.72 1 -1.72

Unit Price Formulas:

The monthly price is 4.00 and there are 28 days in the service period 2/13/2018 – 3/12/2018. This equates to a daily price of 0.143 (4/28).

Unit price = days in service period x daily price x number of licenses.

There are 12 days in the cancellation period 3/1/2018 – 3/12/2018.

Therefore, the unit price = -1.716 (14x0.14 x(-1)).

Annual Billing Scenarios

Scenario 1: New subscription

Your billing date is the 15th of each month. On January 13 you purchase a new subscription with one license for $4/month and select annual billing. The January 15th license-based reconciliation file will contain the following billing line:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 1/12/2019 Prorate fees when purchase 48.00 1 48.00

Scenario 2: Add license after subscription anniversary date but before billing date

You purchase a new subscription on 2/11/17 with one license for $211.20/year. Your subscription anniversary is set as the 11th of each month. The Microsoft billing system creates the following billing lines:

  • $211.20 charge for period 2/11/17 – 2/10/18.

On 2/12/17 you purchase a second license. Your billing date is 2/14/17. An invoice and reconciliation file are generated. The reconciliation file will contain the following billing lines:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
2/11/2017 2/10/2018 Prorate Fees When Purchase 211.20 1 211.20

On your subscription anniversary, 3/11/17, the Microsoft billing system creates the following billing lines for the license increase on 2/12/17:

  • -$211.20 credit for period 2/11/17 – 2/10/18.
  • $0.58 prorated charge per license for 1 license for period 2/11/17 – 2/11/17.
  • $15.62 prorated charge per license for 2 licenses for period 2/12/17 – 3/10/2017.
  • $195.00 prorated charge per license for 2 licenses for period 3/11/2017 – 2/10/2018.

On 2/11/17 you purchase a subscription. On 2/12/17 you add a license. Your billing date is 2/14/17. On 2/11/18 your subscription renews.

Your next billing date is 3/14/17, and an invoice & reconciliation file are generated. The reconciliation file will contain the following billing lines:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
2/11/2017 2/10/2018 Cycle Instance Prorate -211.20 1 -211.20
2/11/2017 2/11/2017 Cycle Instance Prorate 0.58 1 0.58
2/12/2017 3/10/2017 Cycle Instance Prorate 15.62 2 31.25
3/11/2017 2/10/2018 Cycle Instance Prorate 195.00 2 390.00

On 2/11/18 the subscription renews for another 12-month term.

Scenario 3: Change license quantity

Your billing date is the 15th of each month. On January 13 you purchase a new subscription with one license for $4/month and select annual billing. The January 15th license-based reconciliation file will contain the following billing line:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 1/12/2019 Prorate fees when purchase 48.00 1 48.00

On February 1 you increase your license quantity from one to two. The February 15th license-based reconciliation file will contain the following billing lines:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 1/12/2019 Cycle Instance Prorate -48.00 1 -48.00
1/13/2018 1/31/2018 Cycle Instance Prorate 2.47 1 2.47
2/1/2018 1/12/2019 Cycle Instance Prorate 44.98 2 89.96

Unit Price Formulas:

Annual price is 48.00 which equates to daily price of 0.13 (48.00/365).

Unit price = days in service period x daily price x number of licenses.

There are 19 days in service period 1/13/2018 – 1/31/2018.

Therefore, unit price = 2.47 (19x0.13x1)

There are 346 days in service period 2/1/2018 – 1/12/2019.

Therefore, unit price = 44.98 (346x0.13x2)

Scenario 4: Suspend before 30 days

Your billing date is the 15th of each month. On January 13 you purchase a new subscription with one license for $4/month and select annual billing. The January 15th license-based reconciliation file will contain the following billing line:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 1/12/2019 Prorate fees when purchase 48.00 1 48.00

On February 1 you suspend your subscription. The February 15th license-based reconciliation file will contain the following billing line:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 1/12/2019 Cancel Fee -48.00 1 -48.00

Scenario 5: Suspend after 30 days

Your billing date is the 15th of each month. On January 13 you purchase a new subscription with one license for $4/month and select annual billing. The January 15th license-based reconciliation file will contain the following billing line:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 1/12/2019 Prorate fees when purchase 48.00 1 48.00

The February 15th license-based reconciliation file will not contain any billing lines for this subscription. On March 1 you suspend your subscription. The March 15th license-based reconciliation file will contain the following billing line:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
3/1/2018 1/12/2019 Cancel Fee -41.34 1 -41.34

Unit Price Formulas:

Annual price is 48.00 which equates to daily price of 0.13 (48.00/365).

Unit price = days in service period x daily price x number of licenses.

There are 318 days in service period 3/1/2018 – 1/12/2019.

Therefore, unit price = 41.34 (318x0.13x1). Because this is a credit the unit price is -41.34.

Scenario 6: Suspend and reactivate

Your billing date is the 15th of each month. On January 13 you purchase a new subscription with one license for $4/month and select annual billing. The January 15th license-based reconciliation file will contain the following billing line:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 1/12/2019 Prorate fees when purchase 48.00 1 48.00

On February 1 you suspend your subscription. The February 15th license-based reconciliation file will contain the following billing line:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
1/13/2018 1/12/2019 Cancel Fee -48.00 1 -48.00

On March 1 you reactivate your subscription. The March 15th license-based reconciliation file will contain the following billing line:

Charge Start Date Charge End Date Charge Type Unit Price Quantity Amount
3/1/2018 1/12/2019 Prorate fees when purchase 41.34 1 41.34

Unit Price Formulas:

Annual price is 48.00 which equates to daily price of 0.13 (48.00/365).

Unit price = days in service period x daily price x number of licenses.

There are 318 days in service period 3/1/2018 – 1/12/2019.

Therefore, unit price = 41.34 (318x0.13x1).