FAQ about new billing features

Applies to

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

The following are frequently asked questions about Partner Center's annual billing and free trial features.

In this section

Annual billing FAQ

Sections:

Overview and benefits of annual billing

Placing your order and billing scenarios

Changing your subscription

Pricing calculation

Reporting

Incentives

Overview and benefits of annual billing

Q: What has changed?

  • A: In response to your requests, we have introduced the option to pay for certain CSP subscriptions on either an annual or a monthly basis. This new option became available on October 17, 2017.

Q: Who can participate?

  • A: All partners and partner types can avail of annual billing. Annual Billing is available in all in markets where CSP is currently available.

Q: What do I need to take into consideration when thinking about annual billing?

  • A: You should consider how your sales motion will be affected. Here are some tips to help you effectively use annual billing.
    • Update APIs to accommodate for the annual billing feature, if applicable.
    • Review the changes to the invoice and license-based reconciliation file.
    • Ensure your team is informed.
    • Update your internal processes as necessary.

Q: What are the benefits of annual billing?

  • A: Annual billing has the following benefits:

    • Increased flexibility on payment options.

    • Better alignment with your customers’ invoicing.

    • Reduced impact of currency fluctuations.

    • Reduced billing operational costs.

Q: Which offers will have the option for annual billing?

  • A: Most licensed-based subscriptions have the option for either monthly or annual billing option. Usage-based subscriptions only have monthly billing option. You can will identify the available billing frequencies for each offer by using column J in the offer matrix. You can find the offer matrix in the ‘See offers and pricing’ section on Partner Center. .

Q: Is annual billing per subscription or license?

  • A: Both annual and monthly billing are per-subscription.

Q: Are there any changes required to APIs to support annual billing?

Placing your order and billing scenarios

Q: Will there be a unique offer specifically for orders with annual billing?

  • A: No. All billing frequency, including the annual billing option is assigned to the Offer as an attribute. However, you can rename an offer using a more customer friendly name to allow differentiation.

Q: How do I select annual billing?

  • A: When adding a new subscription you will be prompted to choose the billing frequency. You can choose the annual billing option at this point. Once annual billing is selected all available offers will be displayed.

Q: If I choose annual billing when will I be billed?

  • A: You will be billed on your next billing date. For example, if your billing date is the 1st, and you purchase an annually billed subscription on October 29, 2017, you will be billed on November 1, 2017. Assuming you make no license changes you will be billed again on November 1, 2018. If you make a license change you will receive a credit and rebill on your following billing date.

Q: Can I split a subscription so that one part is billed monthly and the other is billed annually?

  • A: No. The entire subscription must have the same billing frequency. The entire subscription must have either monthly or annual billing.

Q: When is the renewal for al subscription with annual billing?

  • A: The renewal date will be twelve months after the service start date. The service period begins on the date that the subscription is created. For example, a subscription created on January 10, 2018, will be renewed on January 10, 2019.

Q: When will I be billed for the renewal of a subscription with annual billing?

  • A: You will be billed on the next billing date after the subscription renewal date. For example, if you purchase an annually billed subscription on January 15, 2018, and your billing date is January 20, your subscription will renew on January 15, 2019. You will be billed for the renewal on January 20, 2019.

Q: Do subscriptions with annual billing receive a free period?

  • A: No, subscriptions with annual billing frequency do not receive a free period. The 12-month paid term begins on the purchase date. This is unlike subscriptions with monthly billing frequency which receive a free period from the purchase date to the next billing date.

Q: Can a customer have multiple subscriptions of the same offer each with different billing frequencies?

  • A: It depends on the offer. There are some offers which are restricted to one subscription per customer. If the offer is not restricted, a customer can have multiple subscriptions of the same offer with different billing frequencies. You can find the details of all the offer limits and restrictions in column I of the offer matrix. You can find the offer matrix in the ‘See offers and pricing’ section on Partner Center.

Changing your subscription

Q: Can I add a new license to an existing subscription which has annual billing?

  • A: Yes. You can change the license quantity for your subscriptions at any time. Adding additional licenses will not impact the billing frequency.

Q:Can I add licenses which have monthly billing to an existing subscription which has annual billing?

  • A: Once you purchase a subscription with annual billing, any additional licenses will follow the same billing frequency. If you then need to purchase licenses with monthly billing, you will need to purchase a new subscription.

Q: Can I switch the billing frequency for a subscription from monthly to annual and vice versa?

  • A: Yes. See To change the billing frequency of an online service in Billing basics.

Q: Is annual billing available for add-on offers?

  • A: Yes. The add-on subscription will automatically have the same billing frequency as the parent subscription.

Q: How will annual billing work when I add or remove licenses?

  • A: You can add or remove licenses at any time. change You will receive a credit and prorated rebill on your next billing date after you change the number of licenses.

Q: What happens if I cancel a subscription with annual billing work?

  • A: The cancellation policy is the same for all billing frequencies. If the subscription is cancelled in the first 30 days of the 12-month paid term you will receive a 100 percent credit on your next billing date. If the subscription is cancelled after 30 days of the 12-month paid term you will receive a prorated credit on your next billing date.

Q: Can a customer move a subscription with annual billing from one partner to another partner?

  • A: No. Subscriptions cannot be moved between partners. The new partner must purchase a new subscription on behalf of the customer. This applies to both monthly and annually billed subscriptions.

Q: Can I reactivate a subscription with annual billing?

  • A: Yes, you may reactivate the subscription for up to 90 days from the suspension date. You will receive a prorated charge on the following billing date. The subscription renewal date remains the same.

Pricing calculation

Q: What happens if an offer price is changed part of the way through the 12-month period of an annually billed subscription?

  • A: The offer price at time of purchase is guaranteed for the full 12-month subscription term.

Q: What price will a subscription be to when it auto-renews after a 12-months subscription term?

  • A: When a subscription renews, the price will be based on the current price list at the date of renewal. The new price is guaranteed for the next 12-month subscription term.

Q: How is the credit for a cancelled license or subscription calculated? Is it calculated to the day or to the month?

  • A: Cancellation credit is calculated as follows:

    • Cancellation credit = ((monthly price*12)/365) * days remaining in the 12-month term * number of licenses cancelled.

Q: What happens if an offer price decreases part of the way through the 12-month period of an annually billed subscription?

  • A: There is no change. The price is set for the full 12-month period. This is the same as monthly billing.

Reporting

Q: Where can I find out whether a subscription is billed annually or monthly?

  • A: The license-based reconciliation file will include the information on the billing frequency. You can find this in column AA

Q: What changes will I see in the license-based reconciliation file when subscription with annual billing is purchased or renewed?

  • A: The first change will be a new row on the license-based reconciliation file on the first billing date following the purchase or a new subscription. on. If no changes are made to the subscription, there will be no rows on reconciliation files for months two to twelve of the subscription term. the next change to the reconciliation file will appear when the subscription is renewed. This will appear on the first billing date after the renewal. If a change is made to the subscription during the 12-month term, a credit and prorated rebill will appear on next reconciliation file after the change is made..

Q: How does the purchase of, change to or cancellation of an annual subscription appear in Column P of the usage files?

  • A: The initial purchase charge appears as “Prorate Fees When Purchase.” License changes that result in credit and rebill appear as “Cycle Instance Prorate.” Cancellation credits appear as “Cancel Fee.”

Q: When an annual subscription is cancelled, how does this appear on the reconciliation file?

  • A: The reconciliation file will contain one line item for a cancellation credit. If the cancellation occurs in the first 30 days of the 12-month term, the subscription will be credited at 100 percent. If the cancellation occurs after the first 30 days, the subscription will be credited on a prorated basis.

Q: How does it appear on the reconciliation file if licenses are added to a subscription which has annual billing?

  • A: The reconciliation file will contain a credit and prorated rebill. This is the same for a subscription with monthly billing.

Q: How does it appear lion the reconciliation file if licenses are removed from a subscription with annual billing?

  • A: The reconciliation file will contain a credit and prorated rebill. This is the same for a subscription with monthly billing.

Q: Is the annual price shown on the price list?

  • A: No. The pricelist shows the monthly price. You can calculate the annual price by multiplying the monthly price by twelve.

Q: Does the offer matrix have different entries for offers which can be billed annually.?

  • A: No. The offer IDs are the same for all billing frequencies. There are no unique offer IDs for annual billing.

Incentives

Q: How often are incentives calculated on annual subscriptions?

  • A: We calculate on billed revenue. Earned incentive payments will land in accordance with our policy found in our CSP incentive guides.

Q: How are incentives on annually billed subscriptions paid?

  • A: Currently all incentive payments are made twice a year. These payments are made 45 days after semester end.

Q: When an annually billed subscription is sold, how will that subscription’s revenue be recognized for the calculation of incentives. Will it be based on billed or adjusted revenue?

  • A: Incentive calculations are based on billed revenue.

Q:, How are the incentive earnings on eligible annually billed subscription calculated across the various CSP incentive rates (global incentive rates, local accelerator rates, and local campaigns)?

  • A: Regardless of how a subscription is billed, whether monthly or annually, partners earn incentives on all eligible transactions. This includes the global incentive rate, which is applied to the billed revenue for the period, the local accelerator for all geographies in which there are local accelerators, ) and any global campaigns where applicable.

Q: Who can you contact if you have questions on incentives?

  • A: Please contact the appropriate regional incentives support team:

    • North America: ocina@microsoft.com

    • Latin America & Brazil: ocilatam@microsoft.com

    • EMEA: ociemea@microsoft.com

    • APOAC (excluding-Japan): ociapgc@microsoft.com

    • Japan: ocijp@microsoft.com

Q: What happens if I suspend my subscription?

  • A: If you suspend a subscription, either in Partner Center or via API, within 30 days of purchase, you will receive a 100% credit, regardless of billing frequency.

    With annual billing, it would look like this:

    • Partner buys subscription on Jan 1 = charge billing line created for service period 1/1 – 12/31.
    • Suspends subscription on Jan 25 = credit billing line created for service period 1/1 – 12/31.
    • Reactivates on Jan 29 = charge billing line created for service period 1/29 – 12/31.

    With monthly billing, it would look like this:

    • Partner buys subscription on Jan 1 = charge billing line created for service period 1/1 – 1/31.
    • Suspends subscription on Jan 25 = credit billing line created for service period 1/1 – 1/31.
    • Reactivates on Jan 29 = charge billing line created for service period 1/29 – 1/31.

Free trials FAQ

Q1: What are free trials?

  • A: You can offer your customers a 30-day free trial of certain products. This allows your customers to evaluate the product before they buy it. Free trials are available for the following products:

    • Office 365 Business Premium (as of October 17, 2017)
    • Office 365 E3 (as of October 17, 2017)
    • Office 365 E5 w/PSTN (as of October 17, 2017)
    • Office 365 E5 w/o PSTN (as of October 17, 2017)
    • Enterprise Mobility & Security E5 (as of October 17, 2017)
    • Dynamics 365 Customer Engagement Plan 1 (as of October 17, 2017)
    • Dynamics 365 for Financials (as of October 17, 2017)
    • Microsoft 365 Business (as of March 1, 2018)

Q2: Are annual billing and free trials different in sovereign cloud vs. public cloud?

  • A: No. They're the same. The only difference will be the trial SKUs that are available at the time of launch.

Q3: Who can participate?

  • A: All partners can participate. However, this is not currently available in China.

Q4: What actions should I take to enable me to benefit from these free trials??

  • A: Consider how the free trial can be incorporated into your selling motion and the impact on your internal processes. You may also need to alter your APIs to accommodate conversion of a free trial to a paid subscription. There are detailed technical specifications for API changes in the Announcements view on Partner Center.

Q5: Will I see the free trial on my invoice and reconciliation file?

  • A: No, free trials will not appear on your invoice or license-based reconciliation file. It will appear on your invoice and license-based reconciliation file after your convert a free trial to a paid subscription. The converted subscription will appear on both your invoice and your license-based reconciliation file in the same way as any other new subscription.

Q6: Do free trials have an impact on incentives?

  • A: No. The free trial has no impact on incentives.

Q7: Will free trials become available for additional Office products in the future?

  • A: We provide free trials for these products because they are the most comprehensive and popular business offers. We may add additional free trial offers in the future.

Q8: Can a customer have more than one free trial?

  • A: Each customer is entitled to one free trial per available offer.

Q9: Are there any limits for a free trial?

  • A: Yes. The trial is for a maximum of 25 licenses. The license count cannot be changed during the trial period. Once the trial is converted to a paid subscription, you can add additional licenses to the subscription.

Q10: Is a free trial automatically converted to a paid subscription?

  • A: No. You’ll need to convert the subscription yourself, either in Partner Center or via API.

Q11: Can free trials be used for both monthly and annual billed subscriptions?

  • A: Yes. You choose billing frequency when you are converting the trial to a paid subscription.

Q12: Will the subscription start date be based on the date the free trial starts, or the date that it is converted to a paid subscription?

  • A: The start date is based on the conversion date. If the free trial is converted to a paid offer with annual billing, the subscription renewal date will be twelve months from the conversion date. If the free trial is converted to a paid offer with monthly billing, the subscription renewal date will be twelve months from the billing date following the conversion date.

Q13: Can we add or remove seats during the free trial?

  • A: No. Free trials will default to a license quantity to 25 and cannot be updated.

Q14: Are there trials for add-on offers like ATP and PSTN?

  • A: There are no free trials for any add-on offers at this time.

Q15: Can I provide a free trial for an offer that a customer already owns?

  • A: No. If the offer is already owned by the customer, it cannot be used for a free trial.

Q16: Will I be able to see all my outstanding trial offers?

  • A: Yes. The customer page lists all subscription. This included both free trial subscriptions and paid subscriptions.

Q17: Will I be notified about expiring free trials?

  • A: No. You can track upcoming expiration dates, either by using the customer view on Partner Center or querying the API. It’s a good idea to monitor these dates frequently so you can take the appropriate follow-up actions with customers as they approach a decision point.

Q18: If a customer has had a free trial for one offer can they also use another trial for a different offer?

  • A: Yes. Customers can sign up for one trial per offer. For example, they can get one free trial for Office 365 Business Premium and one free trial for Office 365 E3.

Q19: What happens when the trial ends? Will I or my customer receive a notification? What notifications appear when I try to log into an expired trial?

  • A: Once a trial has expired, a customer attempting to log into that trial will see a message indicating that the trial has expired. There will not be notifications to flag that a trial is expiring, but as a partner you can track this via the customer view or through API queries.

Q20: Can a trial be extended?

  • A: No. After 30 days, the trial must be converted or it will expire.

Q21: When a trial expires, can the information in the trial be accessed?

  • A: Yes. The data is stored in line with data retention standards. Once you purchase a new subscription with the same service plans, your customer's data can be accessed from the newly activated subscription.

Q22: Are free trials available for Government and Education offers?

  • A: There are no free trials for Government and Education offers at this time.

Q23: Can customer free trials for the Cloud Solution Provider (CSP) program be converted to other program tenants such as EA, Open, or MOSP?

  • A: No. Subscriptions cannot be transferred from CSP to another program.

Q24: How can I get support on free trials?

  • A: Please submit a service request via Partner Center.

Billing alignment - free period ending

Beginning February 21, 2018, the Cloud Solution Provider (CSP) Program will begin to implement “billing date alignment” for new subscriptions with monthly billing frequency. This “billing date alignment” will provide partners with more flexibility and predictability for sales and billing as well as for provisioning and managing customer subscriptions.

FEBRUARY 23rd UPDATE: We previously announced a February 20th implementation date, but our actual implementation was slightly delayed and staggered by product category. Please review the chart below for the implementation date by Product Category.

Product Category Implementation Day
Office February 21
Windows, Minecraft February 22
Office 365 China February 23
Dynamics/Intune February 23

Subscriptions purchased before the implementation date (see chart above) get a free period from the purchase date to the partner billing date. Subscriptions purchased after the implementation date will no longer receive a free period. The 12-month paid period will start (align) on the purchase date vs. the partner billing. Partners will no longer see a ‘$0 billing line’ that represents the free period on the reconciliation file. There are no changes to APIs, invoicing or incentives. Partners should inform their sales and accounting teams of this new billing logic and ensure operations are adjusted as necessary.

Prior to implementing the billing date alignment, we invoiced and charged on a partner’s billing anniversary date, the date the partner signed on with the CSP program; not on the customer’s subscription anniversary date, the date the customer purchased their subscription. Post implementation date, partners will be charged on their subscription anniversary date, eliminating this free period. Partners will continue to receive invoices on their billing anniversary date, but the effective date of the invoice will be the customer’s subscription anniversary date.

Subscriptions that are in the free period on the implementation date will not be charged between the purchase date to the partner billing date. In addition, they will not be charged for month 1 of the 12-month paid term. If you use a recon file for verification, be aware that this first month charge will no longer be visible on the recon file.

Q1: What is changing with the billing date?

  • A: License-based subscriptions will no longer have a free period. Currently, there is a free period from the purchase date to the partner billing date.

Q2: When will the free period be removed?

  • A: Starting on the implementation date listed in the chart below, new subscriptions will not receive a free period.
Product Category Implementation Day
Office February 21
Windows, Minecraft February 22
Office 365 China February 23
Dynamics/Intune February 23

Q3: What will be the impact on subscriptions in the free period on the implementation date?

  • A: Subscriptions which are in the free period on the implementation date will still receive a free period from the purchase date to the partner billing date. These licenses will also receive an "extended free period" and not be charged for month 1 of the 12-month paid term. The "extended free period" will not be applicable to added licenses in month 1. If you increase the license quantity in month 1 you will be charged for those added licenses on the next invoice/recon. If the reconciliation file is used for verification, be aware that this first month charge may be missing from the reconciliation file. See scenarios below for a more detailed explanation.

Q4: When will the 12-month paid period begin for a new subscription?

  • A: Currently, the paid period begins on the partner billing date following the purchase date. From the implementation date, the paid period for new subscriptions will begin on the purchase date.

Q5: When will subscriptions auto-renew?

  • A: Subscriptions auto-renew 12 months after the first billing date. Currently, this means that subscriptions auto-renew 12 months after the first partner billing date following the purchase date. From the implementation date, new subscriptions will auto-renew 12 months after the purchase date.

Q6: What if I purchase the subscription on the 29th, 30th, or 31st day of a month?

  • A: The subscription will be available from the purchase date, but the 12-month paid term won’t start until the first day of the following month.

Q7: Which offers are impacted?

  • A: The removal of free period applies to all CSP license-based subscriptions.

Q8: How does this impact the invoice and reconciliation file?

  • A: You will no longer see the “$0 billing line” on either the invoice or the reconciliation file. Currently, the $0 billing line represents the free period.

Q9: Will my billing date change?

  • A: No, you will continue to receive the invoice and reconciliation file on your existing billing date.

Q10: Will the monthly charge start and end dates change for existing subscriptions?

  • A: No, existing subscription monthly charge start and end dates will continue to align with your billing date. However, new subscriptions will align to the purchase date. See example below.

Q11: Will incentives calculation change?

  • A: No, there is no change to the incentives calculations.

Q12: Will there be a change to the APIs?

  • A: No, there is no change to the APIs.

Common scenarios

Scenarios Scenario 1: Subscription free period ends before the implementation date Scenario 2: Subscription is within the free period on the implementation date Scenario 3: Subscription purchased on or after the implementation date
Purchase date Feb. 1, 2018 Feb. 1, 2018 June 1, 2018
Provisioning date Feb. 1, 2018 Feb. 1, 2018 June 1, 2018
Billing date 15th of each month 25th of each month 15th of each month
Free period February 1, 2018 - February 14, 2018 February 1, 2018 - February 24, 2018 No free period
Month 1 charge February 15, 2018 - March 14, 2018 License quantity on February 24, 2018 will receive extended free period through March 24, 2018. Licenses added after February 24, 2018 will be charged. June 1, 2018 - June 30, 2018
Month 2 charge March 15, 2018 - April 14, 2018 March 25, 2018 - April 24, 2018 July 1, 2018 - July 31, 2018
Paid period begins February 15, 2018 February 25, 2018 June 1, 2018
Paid period ends February 14, 2019 February 24, 2019 May 31, 2019
Renewal date February 15, 2019 February 25, 2019 June 1, 2019

Scenario 4 - New Purchase

The partner billing date is the 15th day of the month. On June 1, 2018, the partner purchases a new subscription. The subscription is priced at $30 per license per month.

The June 15 reconciliation file will contain only the following billing lines:

  • $30 charge for service period June 1 - June 30
Charge start Charge end Unit price Quantity Amount Charge type
6/1/2018 6/30/2018 $30 1 $30 Prorate fees when purchase

Scenario 5a: Suspend and reactivate before billing date

The partner billing date is the 15th day of the month. On June 1, 2018 the partner purchases a new subscription. The subscription is priced at $30 per license per month. On June 5, 2018, the partner suspends the subscription. On June 10, 2018, the partner reactivates the subscription. The June 15 reconciliation file will contain the following billing lines:

  • $30 charge for service period June 1 – June 30.
  • -$30 cancellation credit for service period June 5 - June 30. The credit is not prorated because the subscription was suspended in the first 30 days.
  • $30 charge for service period June 10 - June 30. The charge is not prorated because the subscription was reactivated in the first 30 days.
Charge start Charge end Unit price Quantity Amount Charge type
6/1/2018 6/30/2018 $30 1 $30 Prorate fees when purchase
6/5/2018 6/30/2018 -$30 1 $30 Cancel fee
6/10/2018 6/30/2018 $30 1 $30 Activation fee

Note that when a subscription is suspended and reactivated, the auto-renewal date will remain 12 months from the original purchase date.

Scenario 5b: Suspend and reactivate after billing date but less than 30 days from purchase date

The partner billing date is the 15th day of the month. On June 1, 2018 the partner purchases a new subscription. The subscription is priced at $30 per license per month. On June 20, 2018, the partner suspends the subscription. On June 25, 2018, the partner reactivates the subscription. The June 15 reconciliation file will contain the following billing lines:

  • $30 charge for service period June 1 – June 30.
Charge start Charge end Unit price Quantity Amount Charge type
6/1/2018 6/30/2018 $30 1 $30 Prorate fees when purchase

The July 15 reconciliation file will contain the following billing lines:

  • -$30 cancellation credit for service period June 20 – June 30. The credit is not prorated because the subscription was suspended in the first 30 days.
  • $30 charge for service period June 25 – June 30. The charge is not prorated because the subscription was reactivated in the first 30 days.
  • $30 charge for service period July 1 – July 31.
Charge start Charge end Unit price Quantity Amount Charge type
6/20/2018 6/30/2018 -$30 1 -$30 Cancel fee
6/25/2018 6/30/2018 $30 1 $30 Activation fee
7/1/2018 7/31/2018 $30 1 $30 Cycle fee

Scenario 5c: Suspend and reactivate (different license quantity) after billing date but less than 30 days from purchase date

The partner billing date is the 15th day of the month. On June 1, 2018 the partner purchases a new subscription. The subscription is priced at $30 per license per month. On June 20, 2018, the partner suspends the subscription. On June 25, 2018, the partner reactivates the subscription with two licenses. The June 15 reconciliation file will contain the following billing lines:

  • $30 charge for service period June 1 – June 30.
Charge start Charge end Unit price Quantity Amount Charge type
6/1/2018 6/30/2018 $30 1 $30 Prorate fees when purchase

The July 15 reconciliation file will contain the following billing lines:

  • -$30 cancellation credit for service period June 20 – June 30. The credit is not prorated because the subscription was suspended in the first 30 days.
  • $30 charge for service period June 25 – June 30. The reactivation charge is not prorated because the subscription was reactivated in the first 30 days. The charge is also based on the original license quantity of 1.
  • -$6 credit for service period June 25 – June 30. The reactivation charge only charged you for 1 license during service period 6/25 – 6/30 when you had 2 licenses. The -$6 credit reverses the incorrect charge for service period 6/25- 6/30.
  • $12 prorated rebill for service period June 25 – June 30. The partner had 2 licenses during this service period. The unit price is calculated as (30/30)62= $12.
  • $60 charge for service period July 1 – July 31.
Charge start Charge end Unit price Quantity Amount Charge type
6/20/2018 6/30/2018 -$30 1 -$30 Cancel fee
6/25/2018 6/30/2018 $30 1 $30 Activation fee
6/25/2018 6/30/2018 -$6 1 -$6 Cycle instance prorate
6/25/2018 6/30/2018 $6 2 $12 Cycle instance prorate
7/1/2018 7/31/2018 $30 2 $60 Cycle fee

Scenario 6: Subscription suspension less than 30 days after purchase and reactivation more than 30 days after purchase

The partner billing date is the 15th day of the month. On June 1 the partner purchases a new subscription of one license at $30 per month. On June 5, the partner suspends the subscription. The June 15 reconciliation file will contain the following billing lines:

  • $30 charge for service period June 1 - June 30
  • -$30 cancellation credit for service period June 5 - June 30. The credit is not prorated because the subscription was suspended in the first 30 days.
Charge start Charge end Unit price Quantity Amount Charge type
6/1/2018 6/30/2018 $30 1 $30 Prorate fees when purchase
6/5/2018 6/30/2018 -$30 1 -$30 Cancel fee

On July 10, the partner reactivates the subscription. The July 15 reconciliation file will contain the following billing lines:

  • $21.30 reactivation charge for service period July 10 - July 31. Reactivations after 30 days from purchase date result in a prorated charge.
Charge start Charge end Unit price Quantity Amount Charge type
7/10/2018 7/31/2018 $21.30 1 $21.30 Activation fee

The August 15 reconciliation file will contain the following billing lines:

  • $30 charge for service period August 1 – August 31.
Charge start Charge end Unit price Quantity Amount Charge type
8/1/2018 8/31/2018 $30 1 $30 Cycle fee

Note that when a subscription is suspended and reactivated, the auto-renewal date will remain 12 months from the original purchase date.

Scenario 7: subscription suspension and reactivation more than 30 days after purchase

The partner billing date is the 15th day of the month. On June 1, the partner purchases a new subscription of one license priced at $30 per month.

The June 15 reconciliation file will contain only the following billing lines:

  • $30 charge for service period June 1 – June 30.
Charge start Charge end Unit price Quantity Amount Charge type
6/1/2018 6/30/2018 $30 1 $30 Prorate fees when purchase

The partner suspends the subscription on July 5 but then reactivates it on July 15. The July 15 reconciliation file will contain the following billing lines:

  • $30 charge for service period July 1 - July 31.
  • -$26.14 cancellation credit for service period July 5 – July 31. Cancellations after 30 days from purchase date result in a prorated credit. Calculation = (monthly price/days in total service period) x days in prorated service period x license quantity x (-1) = (30/31) x 27 x 1 x (-1) = -26.14.
  • $21.30 reactivation charge for service period July 10 - July 31. Reactivations after 30 days from purchase date result in a prorated charge. Calculation = (30/31) x 22 x 1 = 21.30.
Charge start Charge end Unit price Quantity Amount Charge type
7/1/2018 7/31/2018 $30 1 $30 Cycle fee
7/5/2018 7/31/2018 -$26.14 1 -$26.14 Cancel fee
7/10/2018 7/31/2018 -$21.30 1 $21.30 Activation fee

The August 15 reconciliation file will contain the following:

  • $30 charge for service period August 1 – August 31.
Charge start Charge end Unit price Quantity Amount Charge type
8/1/2018 8/31/2018 $30 1 $30 Cycle fee

Scenario 8: Change of license quantity

The partner billing date is the 15th. On June 1 the partner purchases a new subscription at $30 per month. On June 10 the partner increases the license quantity from 1 to 2 licenses. The June 15 reconciliation file will contain the following billing lines:

  • $30 charge for service period June 1 – June 30. Even though the partner increased the license quantity before the June 15 billing date, the Microsoft billing system does not recognize the change until the subscription anniversary day on July 1.
Charge start Charge end Unit price Quantity Amount Charge type
6/1/2018 6/30/2018 $30 1 $30 Prorate fees when purchase

On July 1, the subscription anniversary day, the Microsoft billing system will recognize the license quantity was changed from 1 to 2 on June 10. The billing system will generate a credit and prorated rebills for the service period June 1 - June 9 and June 10 - June 30.

The July 15 reconciliation file will contain the following:

  • -$30 credit for service period June 1 - 30.
  • $9 prorated rebill for service period June 1 – June 9. This is the period when the customer had 1 license. Calculation = (monthly price/total days in service period) x days in prorated service period x number of licenses = (30/30) x 9 x 1 = 9.
  • $42 prorated rebill for service period June 10 - June 30. This is the period when the customer had 2 licenses. Calculation = (30/30) x 21 x 2 = 42.
  • $60 charge for service period July 1 – July 31.
Charge start Charge end Unit price Quantity Amount Charge type
6/1/2018 6/30/2018 -$30 1 -$30 Cycle instance prorate
6/1/2018 6/9/2018 $9 1 $9 Cycle instance prorate
6/10/2018 6/30/2018 $21 2 $42 Cycle instance prorate
7/1/2018 7/31/2018 $30 2 $60 Cycle fee

Scenario 9: Add-on subscriptions

The partner billing date is the 15th day of the month. On June 1, the partner purchases a new subscription of one license priced at $30 per month. On June 10 the partner purchases a new add-on subscription at $5 per month. The add-on subscription renewal date will align to the base subscription renewal date which is June 1.

One June 10, the partner purchases an add-on subscription of one license priced at $5 per month.

The June 15 reconciliation file will contain the following billing lines:

  • $30 charge for service period June 1 – June 30. This is for the base subscription.
  • $3.50 prorated charge for service period June 10 – June 30. This is for the add-on subscription.
Charge start Charge end Unit price Quantity Amount Charge type
6/1/2018 6/30/2018 $30 1 $30 Prorate fees when purchase
6/10/2018 6/30/2018 $3.50 1 $3.50 Prorate fees when purchase

The July 15 reconciliation file will contain the following billing lines:

  • $30 charge for service period July 1 – July 31. This is for the base subscription.
  • $5 charge for service period July 1 – July 31. This is for the add-on subscription.
Charge start Charge end Unit price Quantity Amount Charge type
7/1/2018 7/31/2018 $30 1 $30 Cycle fee
7/1/2018 7/31/2018 $5 1 $5 Cycle fee

Note the add-on subscription will have an auto-renewal date of June 1, 2019, which aligns to the base subscription.

Scenario 10: New purchase on the 29th, 30th, or 31st

The partner billing date is the 15th day of the month. On May 29, the partner purchases a new subscription of one license priced at $30 per month. Subscriptions purchased on the 29th, 30th, or 31st will have a free period from the purchase date until the 1st of the following month. The subscription anniversary day will default to the 1st. In this scenario, the subscription will receive a free period from May 29 through May 31 and the 12-month paid period will begin on June 1.

The June 15 reconciliation file will contain the following billing lines:

  • $30 charge for service period June 1 - June 30.
Charge start Charge end Unit price Quantity Amount Charge type
5/29/2018 6/30/2018 $30 1 $30 Prorate fees when purchase

Note that the subscription will auto-renew on June 1, 2019.