Payout schedules and processes
Appropriate roles: Account admin | Global admin
This article discusses Microsoft's payment schedule, where to find the status of a payout, and the process for customer non-payment.
Payment schedules
The following sections describe our payouts process for Enterprise Agreement and Microsoft Customer Agreement or CSP transactions.
Transactions when customer has an Enterprise Agreement
When a customer purchases a product from the Microsoft commercial marketplace or Azure Marketplace using their existing Microsoft Enterprise Agreement for transactions, we'll issue payouts in the next payout cycle per the table below based on usage or subscription purchase.
A payout will often occur before Microsoft collects payment from the customer. See Process for customer non-payment below for the actions we take if the customer fails to pay Microsoft but we've already issued a payout.
This table shows EA transactions (usage).
| Event | Description | Reporting Visibility | Timing |
|---|---|---|---|
| Usage | Customer uses a service. | Usage Dashboard | Month 1 |
| Microsoft calculates billing amount | Determine total usage over previous month period* | Usage Dashboard | Month 2 |
| Transaction reported | Determine agency fee and payout earnings | Marked as Unprocessed in Transaction History on the payout statement | Month 3 (First week) |
| Prepare payout | Earnings are prepared for monthly payment | Marked as Upcoming in Transaction History in the payout statement | Month 3 (First week) |
| Payout sent | Payment is sent to publisher | Marked as Sent in Transaction History and in the Payments section of the payout statement | Month 3 (no later than the 15th) |
| Invoice paid by customer | Microsoft collects payment from customer | No change | Month 4 through 12 |
* Usage date in reporting will show as beginning of the month in which the usage occurred (for example, 10/1 for usage that occurred anytime in October). The payout date is in Pacific Standard Time (PST).
This table shows EA transactions for orders or subscriptions.
| Event | Description | Reporting Visibility | Timing |
|---|---|---|---|
| Month of transaction | Customer buys a service | Order Dashboard | Month 1 |
| Transaction reported | Determine store service fee and calculate earnings | Marked as Unprocessed in Transaction History on the payout statement | Month 2 |
| Prepare payout | Earnings are prepared for monthly payment | Marked as Upcoming in Transaction History in the payout statement | Month 2 (1st week) |
| Payout sent | Payment is sent to publisher | Marked as Sent in Transaction History and in the Payments section of the payout statement | Month 2 (no later than the 15th) |
| Invoice paid by customer | Microsoft collects payment from customer | No change | Month 3 through 12 |
Transactions when customer has a Microsoft Customer Agreement or CSP
When a customer purchases a product from the Microsoft commercial marketplace or Azure Marketplace using a CSP or the Microsoft Customer Agreement we'll issue payouts cycle per the tables below based on usage or subscription purchase. Transactions become eligible for payment once Microsoft has collected payment from the customer.
This table shows the process for MCA, CSP, and Usage.
| Event | Description | Reporting Visibility | Timing |
|---|---|---|---|
| Usage | Customer uses a service | Usage Dashboard | Month 1 |
| Microsoft calculates billing amount | Determine total usage over previous month period* | Usage Dashboard | Month 2 |
| Invoice paid by customer | Microsoft collects payment from customer | Usage Dashboard | Month 3 |
| Transaction reported | Determine store service fee and payout earnings | Marked as Unprocessed in Transaction History on the payout statement | Month 3 |
| Credit Card only: 30-day holding period after Invoice paid | Ensure collection of funds, possible chargebacks and refund requests | Marked as Unprocessed in transaction history on the payout statement | +1 month |
| Prepare payout | Earnings are prepared for monthly payment | Marked as Upcoming in Transaction History in the payout statement | Month 4 (First week)* - +1 month for credit card |
| Payout sent | Payment is sent to publisher | Marked as Sent in Transaction History and in the Payments section of the payout statement | Month 4 (no later than the 15th)* - +1 month for credit card |
* Usage date in reporting will show as beginning of the month in which the usage occurred (that is, 10/1 for usage that occurred anytime in October). The payout date is in Pacific Standard Time (PST).
This table shows the process for MCA, CSP, and orders or subscriptions.
| Event | Description | Reporting Visibility | Timing |
|---|---|---|---|
| Month of transaction | Customer buys a service | Order Dashboard | Month 1 |
| Invoice paid by customer | Microsoft collects payment from customer | Order Dashboard | Month 2 |
| Transaction reported | Determine store service fee and payout earnings | Marked as Unprocessed in Transaction History on the payout statement | Month 2 |
| Credit Card Only: 30-day holding period after Invoice paid | Ensure collection of funds, possible chargebacks and refund requests | Marked as Unprocessed in transaction history on the payout statement | +1 month |
| Prepare payout | Earnings are prepared for monthly payment | Marked as Upcoming in Transaction History in the payout statement | Month 3 (First week) - +1 month for credit card |
| Payout sent | Payment is sent to publisher | Marked as Sent in Transaction History and in the Payments section of the payout statement | Month 3 (no later than the 15th) - +1 month for credit card |
Process for customer non-payment
On rare occasions, Microsoft is unable to collect payments from customers for their commercial marketplace purchases. When a customer fails to pay Microsoft according to their billing schedule, we begin the collections process. This process takes approximately four months and involves persistent communication from Microsoft. If payment isn't received by the end of this process, Microsoft writes off the funds as non-collectable.
Per the payout process articulated here, Microsoft may have already paid out funds to publishers (you) that are ultimately non-collectable. Therefore, we have a process for reconciling these amounts.
Microsoft will recoup any payouts already paid to you using one of the following methods:
- Microsoft may subtract the unpaid amounts from future payouts. For example, if 1,000 USD in payouts are deemed non-collectable and written off, your future payouts will be withheld until the 1,000 USD is recovered.
- Microsoft may request a refund or invoice publishers for any uncollected amounts.
The following schedule is an example:
| Event | Approximate date* | Partner visibility |
|---|---|---|
| Example payout date | 10/15/2020 | Marked as Sent in Transaction History and in Payments section in Payout Dashboard |
| If customer does not pay Microsoft | 12/2/2020 – 12/5/2020 | No change, same as above |
| Customer receives first late payment email | 12/6/2020 | None |
| Customer receives regular emails of increasing urgency | 12/7/2020 – 1/31/2021 | None |
| Publisher is notified write-off is likely | 1/7/2021 | - |
| Customer receives termination notice | 2/1/2021 | None |
| Collection process ends / funds are written off | 2/15/2021 | Email notification sent to publisher that funds have been written off. |
| Payout is deducted | 3/1/2021 | Publisher will see negative transaction in Partner Center payout statement |
| Payout is withheld | 3/15/2021 | Future payouts will be shown in Partner Center payout statement. Publisher won't receive payment until balance is no longer negative. |
* The payout date is in Pacific Standard Time (PST).
Number of days for payments to reach a payout account
We typically send any payment due in a given month on the 15th day of that month, but it takes another time for the payment to reach your account. The number of days depends on the payment method we use for your account, as described below.
Note
The days shown below are approximate; any payment may take more or less time to reach your account.
| Payment method | Number of days to reach payout account |
|---|---|
| PayPal | 1 business day |
| ACH/SEPA | 2-3 business days |
| Wire Transfer | 7-10 business days |