New commerce promotions

Appropriate roles: Admin agent | Sales agent | Global admin

Note

The new commerce experiences for license-based services include many new capabilities and are available to all Cloud Solution Provider (CSPs). For more information, see new commerce experiences overview.

Microsoft will support promotions in new commerce. These promotions will have varying discount amounts and durations.

March 1, 2022, new promotional discounts

The previously announced March 1, 2022 Modern Work pricing changes went into effect as planned. Due to high demand, more time was granted for you to submit transactions for these Modern Work SKUs in new commerce. Therefore, Microsoft has enabled other promotional discounts on these SKUs in CSP new commerce from February 28, 2022 until March 15, 2022.

All CSP new commerce transactions for the commercial Modern Work SKUs listed below that are submitted into the system no later than March 14, 2022, at 5 PM PDT or 12 AM UTC on March 15, 2022, will have the following promotions applied with deeper discounts than the annual and monthly term new commerce promotional discounts. These additional discounts are intended to offset the March 1 price increases. Transactions submitted after March 14, 2022, at 5 PM PDT, will apply the regular annual and monthly term promotional discounts until the previously announced end dates of March 31, 2022 (annual term), and June 30, 2022 (monthly term). You can verify these discounts in the Partner Center catalog purchase experience or by calling the getPromotions API to get the discount details. You can also review details about these promotions in this summary document.

Note

Only CSP partners signed into Partner Center can access the summary document.

Note

These March 1st promotions do not impact Brazil partners.

Below are the product SKUs (and their promotion Ids) that will receive the deeper promotional discounts until 5 p.m. PDT on March 14.

Product SKU name Product ID SKU ID Term Billing plan Promo ID
Office 365 E5 CFQ7TTC0LF8S 0002 P1M Monthly 39NFJQT1W0J8:0002:39NFJQT1Q5KW
Office 365 E5 without Audio Conferencing CFQ7TTC0LF8S 0001 P1M Monthly 39NFJQT1W0J8:0003:39NFJQT1Q5KX
Office 365 E5 without Audio Conferencing CFQ7TTC0LF8S 0001 P1Y Monthly 39NFJQT1W0J9:0003:39NFJQT1Q5L6
Office 365 E5 CFQ7TTC0LF8S 0002 P1Y Monthly 39NFJQT1W0J9:0004:39NFJQT1Q5L4
Office 365 E5 CFQ7TTC0LF8S 0002 P1Y Annual 39NFJQT1W0J9:0005:39NFJQT1Q5L5
Office 365 E5 without Audio Conferencing CFQ7TTC0LF8S 0001 P1Y Annual 39NFJQT1W0J9:0006:39NFJQT1Q5L3
Office 365 E1 CFQ7TTC0LF8Q 0001 P1M Monthly 39NFJQT1W0JB:0002:39NFJQT1Q5KH
Office 365 E1 CFQ7TTC0LF8Q 0001 P1Y Annual 39NFJQT1W0JC:0003:39NFJQT1Q5KT
Office 365 E1 CFQ7TTC0LF8Q 0001 P1Y Monthly 39NFJQT1W0JC:0004:39NFJQT1Q5KV
Microsoft 365 Business Premium CFQ7TTC0LCHC 0002 P1Y Monthly 39NFJQT1W0JJ:0003:39NFJQT1Q5KV
Microsoft 365 Business Premium CFQ7TTC0LCHC 0002 P1Y Annual 39NFJQT1W0JJ:0004:39NFJQT1Q5KT
Microsoft 365 Business Basic CFQ7TTC0LH18 0001 P1Y Monthly 39NFJQT1W0JK:0003:39NFJQT1Q5KV
Microsoft 365 Business Basic CFQ7TTC0LH18 0001 P1Y Annual 39NFJQT1W0JK:0004:39NFJQT1Q5KT
Microsoft 365 E3 - Unattended License CFQ7TTC0LFLX 0003 P1M Monthly 39NFJQT1W0JL:0002:39NFJQT1Q5KX
Microsoft 365 E3 CFQ7TTC0LFLX 0001 P1M Monthly 39NFJQT1W0JL:0003:39NFJQT1Q5KW
Microsoft 365 Business Basic CFQ7TTC0LH18 0001 P1M Monthly 39NFJQT1W0JM:0002:39NFJQT1Q5KH
Microsoft 365 Business Premium CFQ7TTC0LCHC 0002 P1M Monthly 39NFJQT1W0JN:0002:39NFJQT1Q5KH
Microsoft 365 E3 - Unattended License CFQ7TTC0LFLX 0003 P1Y Annual 39NFJQT1W0JP:0003:39NFJQT1Q5L3
Microsoft 365 E3 CFQ7TTC0LFLX 0001 P1Y Annual 39NFJQT1W0JP:0004:39NFJQT1Q5L5
Microsoft 365 E3 CFQ7TTC0LFLX 0001 P1Y Monthly 39NFJQT1W0JP:0005:39NFJQT1Q5L6
Microsoft 365 E3 - Unattended License CFQ7TTC0LFLX 0003 P1Y Monthly 39NFJQT1W0JP:0006:39NFJQT1Q5L4
Office 365 E3 CFQ7TTC0LF8R 0001 P1M Monthly 39NFJQT1W0JQ:0002:39NFJQT1Q5KH
Office 365 E3 CFQ7TTC0LF8R 0001 P1Y Monthly 39NFJQT1W0JR:0003:39NFJQT1Q5KT
Office 365 E3 CFQ7TTC0LF8R 0001 P1Y Annual 39NFJQT1W0JR:0004:39NFJQT1Q5KV

Verify promotions before being billed

You can check the estimates file or unbilled open period line items by going to the Partner Center billing page or by calling the Partner Center APIs to see if promotions were applied to a transaction.

The PromotionID indicates whether or not the promotion was applied. The EffectiveUnitPrice indicates the discounted price. On average, these details are updated 6 hours after the transaction. However, they can take as little as one hour or as long as 24 hours due to system latency.

You can also verify the promotion was applied int the Partner Center order history and activity logs. More information about billing and reconciliation files can be found in the New Commerce Operations Guide.

Discovering promotions

You can discover promotions by visiting the promotions backlog or by calling the getPromotions API. The promotions backlog is a Microsoft list of available promotions that you need to know about. The list is editorially maintained and updated monthly.

As a partner, you can access the list of all CSP promotions in the Global Promo Readiness Guide. You'll need to sign-in to access the guide.

Get promotions list

You can get a list of active new commerce promotions for a given market (country) and segment.

The API returns this list of promotions and important information to help you understand which promotions are available for customers in different countries.

The getPromotions API includes the following data for a given promotion:

  • Duration of the promotion
  • The percentage discount for the promotion. The discount is applied to the partner price (not estimated retail price or ERP).
  • The products and SKUs the promotion is available for

Promotions are applied by the Partner Center when you purchase the product SKU that the promotion is available for. Partner promotions are available in the Partner Center catalog in product SKU details. You can select View promotion details to get more information about the promotion.

You can view the promotion details from the catalog page view SKU details, the review page before submitting the purchase, the confirmation after the order is submitted and the order history page.

Verify eligibility

You can view whether a customer purchase is eligible for a promotion by seeing the information in the review page in Partner Center before purchasing the product. You can also call the verifyPromotionEligibility API, passing the customer tenant ID and the promotion ID. The call returns true if the customer is eligible.

If the customer isn't eligible, the API returns the conditions that weren't met for the promotion to be applied.

You can call verify eligibility and get results back. Eligibility errors can be based on seat counts, incompatible terms, or limits on how many times a promotion can be applied to a customer's product SKU.

For a list of important articles about new commerce promotions APIs, see Next steps at the end of this article.

Important

As a partner, you should:

  • Verify promotions before you submit a transaction. In the Partner Center review page if you don't see a promotion, it will not be applied on the transaction and you will receive the non-promotion price.
  • Look at the cart line item API to see if the promotion is present before submitting a transaction.
  • Call verify promotions API before submitting transactions to verify your customer product sku combination is eligible for the promotion and, if not, the reasons for ineligibility.

There are various reasons a customer isn't eligible for a promotion. These ineligible types will be returned in the validate promotion API in the cases where the customer isn't eligible.

ErrorCode Description
InvalidCatalogItemId Incorrect product SKU availability ID is passed to the eligibility check.
InvalidPromotion Incorrect product SKU availability ID is passed to the eligibility check.
PrerequisiteProductOwnership Customer doesn't have a prerequisite that is required. This is most common when purchasing promotions available for add-ons.
RedemptionLimit Attempting to purchase a promotion that has exceeded the number of redemptions.
SeatCount Attempting to purchase a promotion with a seat limit. Results will include remaining licenses that can be purchased.
OfferPurchasedPreviously Returned for promotions that have one time purchase constraints configured. These can only be purchased one time.
Term Incorrect product SKU availability ID is passed to the eligibility check.

Below are some examples of constraints and validation scenarios.

Seat count

Many promotions have a seat count maximum of 2,400 seats. In these cases, a transaction that has more than 2,400 seats won't qualify for promotional pricing. These seat counts are enforced when purchasing a subscription or when adding seats to a promotion subscription with these limits.

Seat limits for promotions are enforced across partners. If one partner purchases a promotion of 2,300 seats with a promotion seat count limit, a second partner who purchases 200 seats would get the subscription price at the non-promotional price.

Promotion eligibly is enforced at the promotion ID's product SKU when the partner is transacting. A promotion ID has a product:SKU:availability structure. The partner transacts the product SKU and availability from the catalog APIs and the promotionID is applied to the transaction.

Limits, like the 2,400 seat count, are evaluated against the promotionID's product SKU, but not the availability. For an example of a promotion ID of 39NFJQT1PGVJ:0045:39NFJQT1Q684 applied to a catalog item product SKU of CFQ7TTC0LFLX:0001, the limit is enforced against 39NFJQT1PGVJ:0045. Different catalog item product SKUs will have different promotion IDs, so a partner could get promotional pricing for 2,400 seats of Microsoft 365 E3 and for a different product SKU Microsoft 365 E5.

If a partner wants more licenses than the 2,400 seats, the partner will need to purchase one subscription up to the limit of 2,400 at the promotional price and a second subscription at the non-promotional price.

You should always rely on the verify eligibility API to understand whether a promotion will be applied before purchasing. The API will return the minimum, maximum, and the remaining available licenses if the seat limits aren't met.

For example, if a single customer has two partners and a single promotion with a seat constraint maximum of 2,400:

  • Partner 1 purchases 2,000 seats for a customer.
  • Partner 2 sees the promotion and wants to purchase 1,000 seats for the same customer even though there are only 400 seats available.

In this case, verify eligibility will come back with a seat count error. The error will include the minimum, maximum and, in this case, the 400 available seats.

If a partner tries to increase a subscription's seats beyond the promotional limits, they'll see an error: This subscription has a discount applied and the desired quantity is not within minimum and maximum allowed quantity.

Promotions sometimes change the availability ID under the promotion's product SKU. Depending on the promotion, the limits may include term and billing plan for the same Product SKU.

Note

The 2,400 seat limit began on January 10, 2022. Subscriptions purchased prior to that date will not have the new commerce discount promotional prices and will not be held to the 2,400 seat constraints.

Term

Promotions have different discounts defined based on the term. If a partner submits a transaction and the term doesn't match the promotion, the transaction will be at the non-promotional price. Examples of terms are annual or monthly.

Partners may change the term duration of a subscription with a promotion midterm (to supported options available on Partner Center). If a promotion is available for the specific term and billing cycle that the subscription will have following the change, the promotion will automatically be applied. Midterm changes take effect immediately. Midterm updates to term duration remove any changes that may have been scheduled.

Scheduled changes and promotions

Partners can schedule changes to apply to their subscription for the next term. Partners will see if a current promotion is applied and the promotion the scheduled changes will enable for the next term in the right pane for the scheduled change. Partners also see if the scheduled changes will result in no promotion. Like all promotions, the scheduled change promotions will apply to the next term's duration. Partners should take notice of whether a scheduled change will include a promotion before scheduling the change.

Partners using the APIs can include an optional promotion ID when scheduling changes long as the promotion is eligible. Partners should verify the promotion’s eligibility before including a promotion ID. Scheduled changes submitted to the API will return an eligible promotion ID if one exists. This promotion will be applied to the subscription term as long as the scheduled change is not removed. Scheduled changes displaying no promotion ID indicate the next subscription term will not have a promotion.

Note

The ability for a promotion to be applied to a scheduled change is a new feature. Any scheduled changes saved prior to June 16, 2022 will need to be resubmitted in order for a promotion to apply. This feature does not retroactively apply promotions to scheduled changes saved prior to this date.

New customer

Some promotions enforce something called New customer. Both the Dynamics AX Migration and SMB OnPrem Transition evaluate and enforce the new customer limitation. Partner Center enforces a check to only enable the promotion to be applied if the customer has no existing product SKU the promotion is for. This check includes both previous seat-based purchases (legacy) and new commerce product SKUs. The new customer limitation ensures that the product SKU hasn't previously been purchased.

You're encouraged to always check the Partner Center review screen when making a purchase to see if the expected promotion will be applied. Partners who use the APIs should use the VerifyPromotionEligibilities API to evaluate whether the customer is eligible for a given promotion.

First purchase

Some promotions can only be purchased once. A partner will see an eligibility of false using the validate eligibility API with the error type of FirstPurchase. A partner can still purchase the given product SKU but the subscription will be at the non-promotional price. The limitation is per customer, not per partner. Once a customer has a promotion with this rule, they can't get a second promotion applied by a second partner.

Checking eligibility for promotion IDs that change

Promotion IDs include three distinct pieces of information, delimited by a colon. An example is: 39NFJQT1W0JL:0003:39NFJQT1Q5KW. This is represented as Product:SKU:Availability of the promotion. Availability IDs may change frequently just as availabilities often change for product SKUs in the catalog. Partners can still call the eligibility API with the original promotion ID if the availability ID has changed. You can also pass the new current promotion's availability ID, both producing the same eligibility check and results. This is helpful for partners who have promotions enforcing the 2,400 seat cap limits.

Eligibility checks won't honor expired or end-dated promotion Ids. If you have an existing subscription, you'll have to rely on the subscription update's generic errors to know whether the applied change was accepted.

Promotions and renewals

Promotional discounts are for the term of the purchase. Subscriptions with applied promotions will keep the promotional price if the renewal date is in the promotion duration date range. Renewals outside of the promotion duration date range will renew to the non-promotion price (from the price list). You can track the renewal status in the subscription details page and on the getSubscription data renewal instructions.

Promotions and upgrades

New commerce promotions are currently only applied for new subscriptions, renewals and when migrating from legacy to new commerce. In the future, promotional pricing will be applied to auto-renewing from a trial to pay, scheduled changes to new SKUs or terms and mid-term changes to a term with a promotion.

Starting March 10, 2022, mid-term upgrades and transitions will support promotions. Partners upgrading or transitioning from their existing subscription to a new SKU will apply the promotion on the new SKU's terms. Upgrading to an existing SKU without a promotion won't change anything or apply a promotion to the existing subscription if one isn't present. This feature only supports mid-term upgrades to new SKU subscriptions. Scheduled upgrades don't apply to promotions.

If you're using the Partner Center APIs, you'll see a promotion ID returned after posting the transition. This promotion ID tells you that the promotion was applied to the transition.

Promotion IDs can also be found in the unbilled line items in the new commerce recon file. Promotions are reflected in the subscription details page, where they show whether the current subscription promotion will renew at the promotional price or the non-promotional price.

Promotions that overlap

Traditional license-based offers included some promotions whose terms overlap with the new commerce promotions. Below are some examples:

  • Dynamics AX Migration 40% three-year term
  • SMB OnPrem Transition 60% annual term

In cases where a term overlaps, only the deeper discounted promotion will be applied. For example, the annual SMB OnPrem promotion will take precedence over the new commerce annual 5% launch promotions. You can reference the promotions guide for more details.

Promotions and migrations

You can migrate your customer's subscriptions from traditional Microsoft 365/Dynamics 365 to the new commerce versions of their subscriptions. The migrations are available both from the Partner Center or from calling the migration APIs.

When you migrate from a traditional subscription to new commerce, the product SKU you move must match the promotion definition in order to get the promotion.

You can call the verify eligibility API to ensure the target product SKU will apply the promotional price before migration.

Migrating to a subscription with the promotion will apply the promotional price for the rest of the migrated subscription’s term. When migrating a subscription to new commerce, you can select to either start a new term or align to the traditional office subscription’s term. The promotional price applies to whichever term you choose.

The promotion is reapplied when the renewal date is in the promotion's start and end date range if the new commerce subscription has only a few months before its term ends. For more information about how to choose a new term upon migration, see Create a new commerce migration.

Pricing and reconciliation for promotions

Price list files don't include promotional pricing or information. You should use the GetPromotions API or discover promotions in the Partner Center catalog purchase experiences. The API and Partner Center include details about the promotions, such as the percentage of discount and how long the promotion is available for.

You can find the promotions you purchased in the new commerce reconciliation files. The reconciliation line item will have information in the following fields:

  • PromotionID includes the product, SKU and availability ID for the promotion. Partners can use the GetPromotionsById API to get more details about the promotion.
  • PriceAdjustmentDescription includes an explanation about the price change.
  • UnitPrice is the price per unit for the purchase.
  • EffectiveUnitPrice is the price the partner was charged. It reflects the difference between the UnitPrice and the percentage discount for the promotion.

Traditional license-based purchases include different details as reconciliation files are different.

Cross-channel considerations

Cloud Solution Provider (CSP) promotion limits aren't enforced across channels, such as enterprise agreement (EA). You can acquire a new commerce promotion with a 2,400-promotion limit even when the customer may have 3,000 seats from EA.

Next steps