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Billing scenarios for one-time and recurring purchases in Cloud Solution Providers program (CSP) new commerce experience

  • Artikkel

Appropriate roles: Admin agent | Billing admin | Helpdesk agent | Sales agent

Note

For a list of Cloud Solution Providers program (CSP) legacy billing scenarios, see Common billing scenarios for legacy CSP program partners working in Partner Center.

New commerce billing cycle or billing period

A new commerce billing cycle, or billing period, is one full calendar month. Your invoice cost depends on two factors: the billing term and the billing plan.

  • Billing term: The length of time you commit to a subscription.
  • Billing plan: The payment schedule you choose.

You receive invoices and reconciliation data the following month, typically between the 6th and 8th. For example, for a billing period from January 1 to 31, expect your invoice and reconciliation data between February 6 and 8.

New commerce charge cycle

A new commerce charge cycle is the number of days you pay for a subscription. It isn't the same as a billing period or a calendar month. Your charge cycle is typically 30 or 31 days, but 28 or 29 for February for monthly billed subscriptions. It starts from your initial purchase date or when renewal or recurring charges begin. For annual subscriptions, the cycle charge is 365 days (366 in leap years).

For instance, if you bought an annual Microsoft Office subscription on February 21, 2022, with a monthly billing plan, your first charge cycle would run from February 21 to March 20, 2022. The charge cycle ends one day before the same date of the next month, year, or billing term, depending on your billing plan or frequency.

In this case, the first charge cycle is 28 days because February has 28 days (except in leap years). The second charge cycle is 31 days because March has 31 days, from March 21 to April 20. The third charge cycle is 30 days because April has 30 days, from April 21 to May 20. The recurring charge cycle always starts on the same day you bought or renewed your subscription.

Understanding your charge cycle helps you manage your subscription payments effectively. This consistency ensures that you're aware of your billing dates, making financial planning simpler and more predictable.

Tip

To end a subscription with another subscription or a calendar month, see align subscription end dates.

Calculate one-time and recurring charges

Important

To reconcile, include these billing details: Charge Start Date, Charge End Date, Effective Unit Price, Billable Quantity, Billing Frequency, Subscription Start Date, Subscription End Date, and Amount.

For more information, see CSP one-time purchase reconciliation file fields.

Effective billing reconciliation ensures accurate financial records and smooth management of your business subscriptions.

  • Maintain accuracy: Regularly check your billing statements to verify that all transactions match your records.
  • Identify discrepancies: Quickly spot any inconsistencies to address potential issues before they escalate.
  • Streamline processes: Implement efficient systems to automate and simplify your billing reconciliation tasks.

By focusing on these steps, you can improve your financial management and enhance your business operations.

Let's say, on June 18, 2020, you bought 10 monthly licenses of Microsoft 365 Business Standard subscription for a unit price of EUR 10.08. Your goal is to reconcile your charges in the billing period efficiently.

Here's how your June billing period reconciliation line items look when you receive them in July. It features a clear billing line item with all the purchase details.

This streamlined approach ensures accurate financial tracking and makes managing your subscriptions easier.

OrderDate ChargeStartDate ChargeEndDate ChargeType EffectiveUnitPrice BillableQuantity Total
June 18, 2021 June 18, 2021 July 17, 2021 new 10.08 10 100.8

When you renew your subscription, you see a new billing line item or transaction. This line item should have the ChargeType listed as "renew" and the ChargeStartDate as "July 18, 2021."

OrderDate ChargeStartDate ChargeEndDate ChargeType EffectiveUnitPrice BillableQuantity Total
July 18, 2021 July 18, 2021 August 17, 2021 renew 10.08 10 100.8

When you choose an annual subscription, you pay EUR 100.8 each month for a year, starting in July. From August onwards, these charges are marked with the ChargeType "cycleCharge."

OrderDate ChargeStartDate ChargeEndDate ChargeType EffectiveUnitPrice BillableQuantity Total
July 18, 2021 July 18, 2021 August 17, 2021 cycleCharge 10.08 10 100.8

When you prepay for your annual subscription, you see a single billing line item in your June reconciliation data.

OrderDate ChargeStartDate ChargeEndDate ChargeType EffectiveUnitPrice BillableQuantity Total
June 18, 2021 June 18, 2021 June 17, 2022 new 120.96 10 1,209.6

Your reconciliation data shows how much you're billed for your subscriptions. Clearly understanding these details helps you stay on top of your subscription costs and simplify your financial tracking.

Important

When you purchase Microsoft 365 E5, you get a comprehensive solution that covers both telecommunication and non-telecommunication services. To make billing clearer and more manageable, you see two separate line items or transactions in your reconciliation data: one for telecommunication charges and another for non-telecommunication charges. This distinction helps you better understand and track your charges and taxes, ensuring a smooth and transparent billing process.

Distinguish between one-time and recurring charges in invoice reconciliation files or line items

To effectively differentiate between one-time and recurring charges in invoice reconciliation files or line items, follow these guidelines:

One-time or upfront charges:

  • Ensure that the ChargeStartDate and ChargeEndDate match the SubscriptionStartDate and SubscriptionEndDate.
  • Verify that the BillingFrequency is left blank.

Recurring payment or billing plan:

  • Check that the ChargeStartDate and ChargeEndDate are a month apart and confirm the BillingFrequency is "Monthly."
  • Alternatively, ensure the ChargeStartDate and ChargeEndDate are a year apart, with the BillingFrequency set to "Annual."

By following these steps, you should be able to clearly distinguish between one-time and recurring charges, ensuring accurate and efficient reconciliation.

Calculate the costs of a product or subscription with both fixed fee and pay-as-you-go charges

Maximizing the benefits of your subscription-based products is straightforward. Many products come with a fixed number of prepaid units and extra usage charged at a pay-as-you-go rate. For example:

  • With a Microsoft 365 subscription, you pay USD 10 per month for 100 minutes of calls. Any extra minutes cost 10 cents each.

  • With SendGrid, you pay USD 10 per month to send 100 emails. Extra emails cost 10 cents each.

To efficiently manage your subscription costs using daily rated usage and invoice reconciliation data, follow these steps:

  1. Understand daily charges: The BillingPreTaxTotal shows your daily pay-as-you-go charges. For instance, using 50 extra minutes at 10 cents per minute cost you USD 5 for that day.

  2. Verify charges: Compare your monthly pay-as-you-go charges shown in the invoice reconciliation data (Total) with your daily usage charges. For example, if you see USD 5 for 50 extra units (BillableQuantity), it matches your daily usage.

  3. Identify subscription costs: Your fixed monthly plan cost is shown in the Total, which should be USD 10 each month.

  4. Calculate total cost: Check the Product and SKU IDs in the invoice reconciliation data. Typically, you have line items for both fixed fees and pay-as-you-go costs. The combined total should be USD 15.

By following these steps, you can effectively manage and optimize your subscription expenses. This approach encourages smart usage and clear oversight of your costs.

Determine the product category

Here's how you can identify the product category in the reconciliation data. These methods are effective for most transactions, with occasional exceptions.

Condition Product Category
PublisherName says "Microsoft" or "Microsoft Corporation" Microsoft product
PublisherName isn't "Microsoft" or "Microsoft Corporation," and PublisherId isn't empty. Non-Microsoft or marketplace product
TermAndBillingCycle mentions "Reservation" Azure reservation
TermAndBillingCycle includes "Savings Plan" Azure savings plan
TermAndBillingCycle contains "one-month," "one-year," or "three-year" License-based. However, double-check to be sure.
TermAndBillingCycle mentions "Subscription"
If "Subscription" is missing, use the SKU name like "SQL Server" or "Windows Server."		 Software subscription
TermAndBillingCycle is blank, and ChargeEndDate is empty Perpetual software
SubscriptionDescription says "Azure plan" Azure plan
For all remaining conditions Use "Azure plan" as the name for the remaining product category. Feel free to customize each subscription name as needed. Ensure nothing is missing.

These guidelines should help you efficiently categorize your products, making your reconciliation process smoother and more accurate.

Determine the billing term and billing plan in invoice reconciliation files or line items

Understanding your subscription's billing term and plan is key to managing payments and renewals. Here's how to interpret these details in your invoice reconciliation files or line items:

Key definitions

  • Billing term:
    The total duration of your subscription, from the SubscriptionStartDate to the SubscriptionEndDate.

    • Example: A one-year term spans from May 25, 2021 to May 24, 2022.

  • Billing plan:
    How often you’re billed within the term, defined by the interval between ChargeStartDate and ChargeEndDate.

    • Example: A one-year term with monthly billing charges you every month (May 25–June 24, June 25–July 24, etc.).

Interpret the TermAndBillingCycle field

This field varies by subscription type and isn't standardized. Use the dates to clarify:

TermAndBillingCycle Subscription Start Date Subscription End Date Charge Start Date Charge End Date Billing Frequency/Plan Billing Term
One-month commitment for monthly billing May 25, 2021 June 24, 2021 May 25, 2021 June 24, 2021 One-month
One-year commitment for monthly/yearly billing May 25, 2021 May 24, 2022 May 25, 2021 June 24, 2021 Monthly One-year
One-year term duration May 25, 2021 May 24, 2022 May 25, 2021 May 24, 2022 One-year
Three-year commitment for monthly/yearly billing May 25, 2021 May 24, 2024 May 25, 2021 June 24, 2021 Monthly Three-year
Three-year commitment for monthly/yearly billing May 25, 2021 May 24, 2024 May 25, 2021 May 24, 2022 Annual Three-year
Three-year commitment for monthly/yearly billing May 25, 2021 May 24, 2024 May 25, 2021 May 24, 2024 Three-year

Follow these steps for clarity

  1. Check dates, not TermAndBillingCycle:

    • Use SubscriptionStartDate and SubscriptionEndDate to confirm the term.

      • Billing term = SubscriptionEndDate - SubscriptionStartDate

    • Use ChargeStartDate and ChargeEndDate to identify billing frequency.

      • Billing plan = ChargeEndDate - ChargeStartDate
      • When charge period equals subscription period, the subscription is billed upfront.

  2. Cross-reference BillingFrequency:

    • Monthly: Charges repeat every month within the billing term.

    • Annual: Charges repeat yearly within the billing term.

    • Empty: Single charge for the full term (for example, one-month or three-year upfront).

By understanding these terms, manage your subscriptions and charge cycles. This knowledge empowers you to keep track upcoming charges and can avoid any confusion related to your billing statements.

Subscription expiration dates on special cases

Here's when monthly subscriptions expire when you buy near the end of a month:

When you buy on the last day of a month

If you buy a monthly subscription on the last day of a month, your subscription and charge end one day before the same date in the following month.

For example:

  • If the next month has 31 days, your subscription ends on the 30th day.
  • If the next month has 30 days, your subscription ends on the 29th day.
  • If the next month is February in a nonleap year, your subscription ends on the 27th day.
  • If the next month is February in a leap year, your subscription ends on the 28th day.

Note

Each line item is a standalone entity with its own charge cycle. All dates are in Coordinated Universal Time (UTC).

Reconciliation line items of a monthly subscription:

BillingTerm OrderDate ChargeType SubscriptionStartDate SubscriptionEndDate RenewDate ChargeStartDate ChargeEndDate
Monthly January 31, 2021 new January 31, 2021 February 27, 2021 February 28, 2021 January 31, 2021 February 27, 2021
Monthly February 28, 2021 new February 28, 2021 March 30, 2021 March 28, 2021 February 28, 2021 March 30, 2021
Monthly May 31, 2021 new May 31, 2021 June 29, 2021 June 30, 2021 May 31, 2021 June 29, 2021
Monthly June 30, 2021 new June 30, 2021 July 29, 2021 July 30, 2021 June 30, 2021 July 29, 2021
Monthly July 31, 2021 new July 31, 2021 August 30, 2021 August 31, 2021 July 31, 2021 August 30, 2021

Reconciliation line items of an annual subscription with a monthly billing plan:

BillingTerm BillingPlan OrderDate ChargeType SubscriptionStartDate SubscriptionEndDate RenewDate ChargeStartDate ChargeEndDate
Annual Monthly January 31, 2021 new January 31, 2021 January 30, 2022 January 31, 2022 January 31, 2021 February 27, 2021
Annual Monthly February 28, 2021 cycleCharge January 31, 2021 January 30, 2022 January 31, 2022 February 28, 2021 March 30, 2021
Annual Monthly March 31, 2021 cycleCharge January 31, 2021 January 30, 2022 January 31, 2022 March 31, 2021 April 29, 2021
Annual Monthly April 30, 2021 cycleCharge January 31, 2021 January 30, 2022 January 31, 2022 April 30, 2021 May 30, 2021
Annual Monthly May 31, 2021 cycleCharge January 31, 2021 January 30, 2022 January 31, 2022 May 31, 2021 June 29, 2021
Annual Monthly June 30, 2021 cycleCharge January 31, 2021 January 30, 2022 January 31, 2022 June 30, 2021 July 30, 2021
Annual Monthly July 31, 2021 cycleCharge January 31, 2021 January 30, 2022 January 31, 2022 July 31, 2021 August 30, 2021
Annual Monthly August 31, 2021 cycleCharge January 31, 2021 January 30, 2022 January 31, 2022 August 31, 2021 September 29, 2021
Annual Monthly September 30, 2021 cycleCharge January 31, 2021 January 30, 2022 January 31, 2022 September 30, 2021 October 30, 2021
Annual Monthly October 31, 2021 cycleCharge January 31, 2021 January 30, 2022 January 31, 2022 October 31, 2021 November 29, 2021
Annual Monthly November 30, 2021 cycleCharge January 31, 2021 January 30, 2022 January 31, 2022 November 30, 2021 December 30, 2021
Annual Monthly December 31, 2021 cycleCharge January 31, 2021 January 30, 2022 January 31, 2022 December 31, 2021 January 30, 2022

When you buy on the day before the last day of a month

If you buy a monthly subscription on the day before the last day of a month, your subscription and charge end two days before the same date in the following month.

For example:

  • If the next month has 31 days, your subscription ends on the 29th day.
  • If the next month has 30 days, your subscription ends on the 28th day.
  • If the next month is February in a nonleap year, your subscription ends on the 26th day.
  • If the next month is February in a leap year, your subscription ends on the 27th day.

Note

Each line item is a standalone entity with its own charge cycle. All dates are in Coordinated Universal Time (UTC).

Reconciliation line items of a monthly subscription:

BillingTerm OrderDate ChargeType SubscriptionStartDate SubscriptionEndDate RenewDate ChargeStartDate ChargeEndDate
Monthly January 30, 2021 new January 30, 2021 February 26, 2021 February 27, 2021 January 30, 2021 February 26, 2021
Monthly February 27, 2021 new February 27, 2021 March 29, 2021 March 30, 2021 February 27, 2021 March 29, 2021
Monthly May 30, 2021 new May 30, 2021 June 29, 2021 June 30, 2021 May 30, 2021 June 29, 2021
Monthly June 29, 2021 new June 29, 2021 July 28, 2021 July 29, 2021 June 29, 2021 July 28, 2021
Monthly July 30, 2021 new July 30, 2021 August 29, 2021 August 30, 2021 July 30, 2021 August 29, 2021

Reconciliation line items of an annual subscription with a monthly billing plan:

BillingTerm BillingPlan OrderDate ChargeType SubscriptionStartDate SubscriptionEndDate RenewDate ChargeStartDate ChargeEndDate
Annual Monthly January 30, 2021 new January 30, 2021 January 29, 2022 January 30, 2022 January 30, 2021 February 26, 2021
Annual Monthly February 27, 2021 cycleCharge January 30, 2021 January 29, 2022 January 30, 2022 February 27, 2021 March 29, 2021
Annual Monthly March 30, 2021 cycleCharge January 30, 2021 January 29, 2022 January 30, 2022 March 30, 2021 April 28, 2021
Annual Monthly April 30, 2021 cycleCharge January 30, 2021 January 29, 2022 January 30, 2022 April 29, 2021 May 29, 2021
Annual Monthly May 30, 2021 cycleCharge January 30, 2021 January 29, 2022 January 30, 2022 May 30, 2021 June 28, 2021
Annual Monthly June 30, 2021 cycleCharge January 30, 2021 January 29, 2022 January 30, 2022 June 29, 2021 July 29, 2021
Annual Monthly July 30, 2021 cycleCharge January 30, 2021 January 29, 2022 January 30, 2022 July 30, 2021 August 29, 2021
Annual Monthly August 30, 2021 cycleCharge January 30, 2021 January 29, 2022 January 30, 2022 August 30, 2021 September 29, 2021
Annual Monthly September 30, 2021 cycleCharge January 30, 2021 January 29, 2022 January 30, 2022 September 30, 2021 October 28, 2021
Annual Monthly October 30, 2021 cycleCharge January 30, 2021 January 29, 2022 January 30, 2022 October 29, 2021 November 28, 2021
Annual Monthly November 30, 2021 cycleCharge January 30, 2021 January 29, 2022 January 30, 2022 November 29, 2021 December 29, 2021
Annual Monthly December 30, 2021 cycleCharge January 30, 2021 January 29, 2022 January 30, 2022 December 30, 2021 January 29, 2022

How are licenses added or removed?

Learn how we adjust charges for license-based products when you update the license count, including prorated charges and refunds.

Key concepts

Charge cycle: Typically 30 or 31 days, but 28 or 29 for February for monthly billed subscriptions. It starts from your initial purchase date or when renewal or recurring charges begin. For annual subscriptions, the cycle charge is 365 days (366 in leap years). To learn more about how charge cycles are determined, see new commerce charge cycle.

Daily rate: Unit price ÷ total days in the charge cycle.

Prorate charge cycle or billing days: Number of days from the change until the end of the charge cycle.

Effective unit price: Daily rate × billing days.

Total: Effective unit price x license count.

Total amounts might change due to taxes, exchange rates, and other adjustments.

Add licenses

Scenario:

Let's say you bought 10 licenses of a monthly "Microsoft 365 Business Standard" subscription on June 18, 2021. Each license costs EUR 10.08. On June 20, you added two more licenses.

  • June 18: Purchase 10 licenses of "Microsoft 365 Business Standard" at EUR 10.08/month.
  • June 20: Add two licenses (total 12).
  • Charge cycle: June 18 – July 17 (30 days) since June has 30 days.
  • Prorate charge cycle or billing days: June 20 – July 17 (28 days).

To change the number of licenses, the system goes through a two-step process that happens simultaneously:

  • Refund (Wipe): Refund your unused portion. The system looks at:

    • Your current number of licenses
    • The remaining days in your billing cycle
    • The daily rate for each license

  • Charge (Recreate): Charge for the new license count, but only for the remaining days.

Billing process

Initial purchase (June 18):

You start with 10 licenses at EUR 10.08 each for a full 30-day cycle. This calculation is straightforward - you pay the full price because you're using the licenses for the entire period:

EUR 10.08 per license × 10 licenses = EUR 100.80 total

Adding licenses (June 20) :

When you add two licenses two days into your cycle, the system calculates:

First, the refund for your existing 10 licenses:

Original daily rate: EUR 10.08 ÷ 30 days = EUR 0.336 per day
Remaining days: 28 days
Effective unit price: EUR 0.336 × 28 = EUR 9.408 per license
Refund amount: EUR 9.408 × 10 licenses = EUR 94.08 (rounded down to two decimal places)

Then, the new charge for 12 licenses:

Same daily rate: EUR 0.336 per day
Same remaining days: 28 days
Same effective unit price: EUR 9.408 per license
New charge: EUR 9.408 × 12 licenses = EUR 112.89 (rounded down to two decimal places)

Remove licenses

Scenario:

If you removed four licenses on June 20, we adjust the charges accordingly.

  • June 20: Add two licenses (total 12).
  • June 20: Remove four licenses (total 8).
  • Charge cycle: June 18 – July 17 (30 days) since June has 30 days.
  • Prorate charge cycle or billing days: June 20 – July 17 (28 days).

Billing process

Removing licenses (June 20):

First, refund the current 12 licenses:

Daily rate: EUR 0.336 per day
Remaining days: 28 days
Effective unit price: EUR 9.408 per license
Refund amount: EUR 9.408 × 12 licenses = EUR 112.89 (rounded down to two decimal places)

Then, charge for the new eight licenses:

Same daily rate: EUR 0.336 per day
Same remaining days: 28 days
Same effective unit price: EUR 9.408 per license
New charge: EUR 9.408 × 8 licenses = EUR 75.26 (rounded down to two decimal places)

Reconciliation line items for June billing period after adding and removing the licenses:

OrderDate ChargeType UnitPrice ChargeStartDate ChargeEndDate EffectiveUnitPrice BillableQuantity Total
June 18, 2021 new 10.08 June 18, 2021 July 17, 2021 10.08 10 100.8
June 20, 2021 addQuantity 10.08 June 20, 2021 July 17, 2021 –9.408 10 –94.08
June 20, 2021 addQuantity 10.08 June 20, 2021 July 17, 2021 9.408 12 112.89
June 20, 2021 removeQuantity 10.08 June 20, 2021 July 17, 2021 –9.408 12 –112.89
June 20, 2021 removeQuantity 10.08 June 20, 2021 July 17, 2021 9.408 8 75.26

Add and remove license with cross-charge-cycle:

Scenario:

Assuming you added two licenses on July 2 and removed four licenses on July 3, these changes would be reflected in the July reconciliation line items. Our billing cycle aligns with the calendar month, and according to our reconciliation principles, only transactions occurring within a specific month are included in that month's reconciliation. This method ensures accuracy and transparency in our billing process.

  • June 18: Purchase 10 licenses of "Microsoft 365 Business Standard" at EUR 10.08/month.
  • July 2: Add two licenses (total 12).
  • July 3: Remove four licenses (total 8).
  • Charge cycle: June 18 – July 17 (30 days). The changes occurred in July, while the purchase was made in June, which has 30 days.
  • Prorate charge cycle or billing days when adding license: July 2 – July 17 (16 days).
  • Prorate charge cycle or billing days when removing license: July 5 – July 17 (13 days).

Billing process

Initial purchase (June 18):

Initial purchase was on June 18 and already included in the June reconciliation line items. It doesn't appear again in July reconciliation line items.

Adding licenses (July 2) :

When you add two licenses two days into your cycle, the system calculates:

First, the refund for your existing 10 licenses:

Original daily rate: EUR 10.08 ÷ 30 days = EUR 0.336 per day
Remaining days: 16 days 
Effective unit price: EUR 0.336 × 16 = EUR 5.376 per license
Refund amount: EUR 5.376 × 10 licenses = EUR 53.76 (rounded down to two decimal places)

Then, the new charge for 12 licenses:

Same daily rate: EUR 0.336 per day
Same remaining days: 16 days
Same effective unit price: EUR 5.376 per license
New charge: EUR 5.376 × 12 licenses = EUR 64.51 (rounded down to two decimal places)

Removing licenses (July 5) :

When you remove four licenses two days into your cycle, the system calculates:

First, the refund for your existing 12 licenses:

Original daily rate: EUR 10.08 ÷ 30 days = EUR 0.336 per day
Remaining days: 13 days 
Effective unit price: EUR 0.336 × 13 = EUR 4.368 per license
Refund amount: EUR 4.368 × 12 licenses = EUR 52.41 (rounded down to two decimal places)

Then, the new charge for eight licenses:

Same daily rate: EUR 0.336 per day
Same remaining days: 13 days
Same effective unit price: EUR 4.368 per license
New charge: EUR 4.368 × 8 licenses = EUR 34.94 (rounded down to two decimal places)

Reconciliation line items for July billing period after adding and removing the licenses:

OrderDate ChargeType UnitPrice ChargeStartDate ChargeEndDate EffectiveUnitPrice BillableQuantity Total
July 2, 2021 addQuantity 10.08 July 2, 2021 July 17, 2021 –5.376 10 –53.76
July 2, 2021 addQuantity 10.08 July 2, 2021 July 17, 2021 5.376 12 64.51
July 5, 2021 removeQuantity 10.08 July 5, 2021 July 17, 2021 –4.368 12 –52.41
July 5, 2021 removeQuantity 10.08 July 5, 2021 July 17, 2021 4.368 8 34.94

Understand the refund calculation process for cancellations

When you cancel a subscription, the system performs two main calculations:

  • Determines what you already paid for.
  • Calculates the refund for the unused portion.

Key concepts

Charge cycle: Typically 30 or 31 days, but 28 or 29 for February for monthly billed subscriptions. It starts from your initial purchase date or when renewal or recurring charges begin. For annual subscriptions, the cycle charge is 365 days (366 in leap years). To learn more about how charge cycles are determined, see new commerce charge cycle.

Daily rate: Unit price ÷ total days in the charge cycle.

Cancellation and unused days: Number of days from the cancellation until the end of the charge cycle.

Effective unit price for refund: Daily rate × unused days.

Total refund: Effective unit price x license count.

Total cost and refund might change due to taxes, exchange rates, and other adjustments.

Cancel a subscription

Scenario:

Let's assume, you bought 10 licenses of a monthly "Microsoft 365 Business Standard" subscription on July 15, 2021, and canceled it on July 17. Each license costs EUR 10.08.

  • July 15: Purchase 10 licenses of "Microsoft 365 Business Standard" at EUR 10.08/month.
  • July 17: Canceled the subscription.
  • Charge cycle: July 15 – August 14 (31 days). July has 31 days.
  • Unused days after canceling the subscription: July 17 – August 14 (29 days).

Billing process

Initial purchase (July 15):

You start with 10 licenses at EUR 10.08 each for a full 31-day cycle. This calculation is straightforward - you pay the full price because you're using the licenses for the entire period:

EUR 10.08 per license × 10 licenses = EUR 100.80 total

Then, you cancel the subscription on July 17:

Original daily rate: EUR 10.08 ÷ 31 days = EUR 0.32516129 per day
Remaining days: 29 days 
Effective unit price: EUR 0.32516129 × 29 = EUR 9.429677419 per license
Refund amount: EUR 9.429677419 × 10 licenses = EUR 94.20 (rounded down to two decimal places)

Reconciliation line items for the July billing period after cancellation:

OrderDate ChargeType UnitPrice ChargeStartDate ChargeEndDate EffectiveUnitPrice BillableQuantity Total
July 15, 2021 new 10.08 July 15, 2021 August 14, 2021 10.08 10 100.8
July 17, 2021 cancelImmediate 10.08 July 17, 2021 August 14, 2021 –9.429677419 10 –94.20

Refund calculation summary for cancellations

The refund policy applies to all new commerce per-user or license-based subscriptions, regardless of length.

  1. 24-hour full refund:

    • Eligibility: Cancel within 24 hours of purchase or renewal.
    • Cancellation method: Self-serve through the system.
    • Refund processing time: Takes up to 24 hours. Check your estimates files or line items for confirmation.

  2. Seven-day prorated refund:

    • Eligibility: Cancel after 24 hours but within seven days of purchase or renewal.
    • Refund Calculation: Based on the time elapsed ("unused portion").
    • Cancellation method: Self-serve through the system.
    • Refund processing time: Takes up to 24 hours. Check your estimates files or line items for confirmation.

  3. Beyond seven days no refund:

    • After seven days, no refund is provided. Cancellation method: For unique situations or exceptional cases, open a support ticket but the refund isn't guaranteed. For more information, see new commerce cancellation policy.
    • Refund processing time: Depends on the eligibility checks and processing time. Check your estimates files or line items for confirmation.

Important

  • Annual subscriptions: The daily rate calculation remains consistent. For an annual subscription with 365 or 366 (leap year) days, the daily rate would be:

    • Daily rate = (Annual unit price) ÷ (365 or 366)

The same method applies for calculating unused days and the refund amount.

  • Varying month lengths: The calculation adjusts based on the number of days in the charge cycle. For example, if it starts in February, the daily rate accounts for whether the month has 28 or 29 days.

The refund process is designed to ensure fairness by prorating based on unused days. Understanding the daily rate calculation and how it applies to different scenarios helps in predicting refund amounts and managing subscription costs effectively. For specific cases like annual subscriptions or multiple licenses, the same principles apply, with adjustments for the unique parameters of each situation.

Understanding how to upgrade a subscription is essential to effectively managing your services and costs. Here's how the process works:

When you upgrade a subscription, you transition from one service tier to another. The system ensures you're billed accurately for the services you use. If you upgrade from a basic to a premium subscription mid-month, you're charged the basic rate for the period you used it and the premium rate for the rest of the charge cycle.

There are two main types of upgrades:

  1. Full upgrade: Moving all your licenses from one service level to another. All users have access to the new service tier.

  2. Partial upgrade: Upgrade only a portion of your licenses to the premium service level. This process allows you to customize service levels according to specific needs within your organization.

By understanding these upgrade options, you can manage your subscriptions and costs more effectively. Upgrades help a smooth transition to a service level that aligns perfectly with your requirements.

Key concepts of reconciling old and new subscriptions

Identify the upgrade date: Determine the exact date when the upgrade occurred. This date marks the transition point from the old subscription to the new one and the prorated refunds and charges are calculated from this date.

Charge cycle: Typically 30 or 31 days, but 28 or 29 for February for monthly billed subscriptions. It starts from your initial purchase date or when renewal or recurring charges begin. For annual subscriptions, the cycle charge is 365 days (366 in leap years). To learn more about how charge cycles are determined, see new commerce charge cycle.

Daily rate: Unit price ÷ total days in the charge cycle.

Prorate charge cycle or billing days: Number of days from the upgrade until the end of the charge cycle.

Effective unit price: Daily rate × billing days.

Calculate prorated charges and refunds:

For the old subscription: Compute the refund for the period from the upgrade date to the end of the charge cycle. Use the formula:

  • Refund = Effective unit price × license count.

For the new subscription: Calculate the charge from the upgrade date to the end of the charge cycle using the same formula.

  • Charge = Effective unit price × license count.

Total refunds and charges might change due to taxes, exchange rates, and other adjustments.

Full upgrade

Scenario:

Let's say, you bought 300 licenses of a monthly "Microsoft 365 Business Standard" subscription on June 18 for your customer Contoso. Each license costs EUR 10.08. On June 25, you upgraded the subscription to "Office 365 E1," as per Contoso's request. The new subscription's price for each license is EUR 6.43.

  • June 18: Initial purchase of 300 licenses of a "Microsoft 365 Business Standard" subscription at EUR 10.08/month.
  • June 25: Upgrade all 300 licenses to "Office 365 E1" subscription at EUR 6.43/month.
  • Charge cycle: June 18 to July 17 (30 days total) since June has 30 days.

Billing process:

  1. Initial charge (June 18 - July 17):

    You're initially charged for "Microsoft 365 Business Standard" from June 18 to July 17.

    Total charge: 300 licenses × EUR 10.08 per license = EUR 3,024 (rounded down to two decimal places)

  2. Refund for unused period (June 25 - July 17):

    After you upgrade the subscription to "Office 365 E1" on June 25, a refund is issued for the unused portion of "Microsoft 365 Business Standard" from June 25 to July 17.

    Daily rate: EUR 10.08 ÷ 30 days = EUR 0.336 per day

Unused period: 23 days (June 25 to July 17)

Effective unit price: EUR 0.336 × 23 days = EUR 7.72 per license

Total refund: EUR 7.72 × 300 licenses = EUR 2,316 (rounded down to two decimal places)

  3. Charge for new subscription (June 25 - July 17):

    You're billed for "Office 365 E1" from June 25 to July 17.

    Daily rate: EUR 6.43 ÷ 30 days = EUR 0.214 per day

Same unused period: 23 days (June 25 to July 17)

Effective unit price: EUR 0.214 × 23 days = EUR 4.92 per license

Total charge: EUR 4.92 × 300 licenses = EUR 1,476 (rounded down to two decimal places)

Reconciliation line items for June billing period after full upgrade:

OrderDate ProductName ChargeType UnitPrice ChargeStartDate ChargeEndDate EffectiveUnitPrice BillableQuantity Total SubscriptionId ReferenceId
June 18, 2021 Microsoft 365 Business Standard new 10.08 June 18, 2021 July 17, 2021 10.08 300 3024 aaaa0a0a-bb1b-cc2c-dd3d-eeeeee4e4e4e aaaa0000-bb11-2222-33cc-444444dddddd
June 25, 2021 Microsoft 365 Business Standard convert 10.08 June 25, 2021 July 17, 2021 –7.72 300 –2316 aaaa0a0a-bb1b-cc2c-dd3d-eeeeee4e4e4e bbbb1111-cc22-3333-44dd-555555eeeeee
June 25, 2021 Office 365 E1 convert 6.43 June 25, 2021 July 17, 2021 4.92 300 1476 bbbb1b1b-cc2c-dd3d-ee4e-ffffff5f5f5f bbbb1111-cc22-3333-44dd-555555eeeeee

Partial upgrade

Scenario:

Let's say, you bought 300 licenses of a monthly "Microsoft 365 Business Standard" subscription on June 18 for your customer Contoso. Each license costs EUR 10.08. On June 25, you upgraded 100 licenses of the subscription to "Office 365 E1," as per Contoso's request. The new subscription's price for each license is EUR 6.43.

  • June 18: Initial purchase of 300 licenses of a "Microsoft 365 Business Standard" subscription at EUR 10.08/month.
  • June 25: Upgrade only 100 licenses to "Office 365 E1" subscription at EUR 6.43/month.
  • Charge cycle: June 18 to July 17 (30 days total) since June has 30 days.

Billing process:

  1. Initial charge (June 18 - July 17):

    You're initially charged for "Microsoft 365 Business Standard" from June 18 to July 17.

    Total charge: 300 licenses × EUR 10.08 per license = EUR 3,024 (rounded down to two decimal places)

  2. Refund for unused period (June 25 - July 17):

    After you upgrade the subscription to "Office 365 E1" on June 25, a refund is issued for the unused portion of "Microsoft 365 Business Standard" from June 25 to July 17.

    Daily rate: EUR 10.08 ÷ 30 days = EUR 0.336 per day

Unused period: 23 days (June 25 to July 17)

Unused license count: 100 becuse you upgraded those licenses

Effective unit price: EUR 0.336 × 23 days = EUR 7.72 per license

Total refund: EUR 7.72 × 100 licenses = EUR 772 (rounded down to two decimal places)

  3. Charge for new subscription (June 25 - July 17):

    You're billed for "Office 365 E1" from June 25 to July 17.

    Daily rate: EUR 6.43 ÷ 30 days = EUR 0.214 per day

Same unused period: 23 days (June 25 to July 17)

Same license count: 100 becuse you upgraded those licenses

Effective unit price: EUR 0.214 × 23 days = EUR 4.92 per license

Total charge: EUR 4.92 × 100 licenses = EUR 492 (rounded down to two decimal places)

Reconciliation line items for June billing period after partial upgrade:

OrderDate ProductName ChargeType UnitPrice ChargeStartDate ChargeEndDate EffectiveUnitPrice BillableQuantity Total SubscriptionId ReferenceId
June 18, 2021 Microsoft 365 Business Standard new 10.08 June 18, 2021 July 17, 2021 10.08 300 3024 aaaa0a0a-bb1b-cc2c-dd3d-eeeeee4e4e4e aaaa0000-bb11-2222-33cc-444444dddddd
June 25, 2021 Microsoft 365 Business Standard convert 10.08 June 25, 2021 July 17, 2021 –7.72 100 -772 aaaa0a0a-bb1b-cc2c-dd3d-eeeeee4e4e4e bbbb1111-cc22-3333-44dd-555555eeeeee
June 25, 2021 Office 365 E1 convert 6.43 June 25, 2021 July 17, 2021 4.92 100 492 bbbb1b1b-cc2c-dd3d-ee4e-ffffff5f5f5f bbbb1111-cc22-3333-44dd-555555eeeeee

Note

Charge types:

  • The "convert" charge type is used when upgrading to a new subscription.
  • The "moveQuantity" charge type applies when you already have the advanced subscription and are adjusting quantities.

This approach ensures transparent and equitable billing, accurately reflecting the services used before and after the upgrade. Final amounts may vary due to taxes and exchange rates, but the core principle of paying only for what you use remains consistent.

To associate the refund for the old subscription with the charge for the new subscription, follow these steps:

  1. Identify the SubscriptionId: Find the SubscriptionId of the original subscription. This step helps with tracking all related transactions.

  2. Find the matching ReferenceId: Search through your reconciliation files or line items to match the ReferenceId linked to your base SubscriptionId. This ReferenceId connects the refund to the subsequent charge.

  3. Link related transactions: Use the identified ReferenceId to associate all related transactions. This step includes the refund for the old subscription and the charge for the new one. This step ensures a clear and direct connection between these financial adjustments.

By following these steps, you can manage and reconcile your billing information, ensuring transparency and accuracy in your financial records.

How do I reconcile after I convert a trial version to a paid subscription?

Suppose you started a free trial for 25 "Dynamics 365 Guides" licenses on June 25, 2021. The trial lasts for one month, ending on July 25, 2021, but you can switch to a paid version at any time during or after the trial.

Reconciliation line items for the June billing period after switching to paid subscription:

OrderDate ChargeType UnitPrice ChargeStartDate ChargeEndDate EffectiveUnitPrice BillableQuantity ProductQualifiers Total
June 25, 2021 new 0 June 25, 2021 July 24, 2021 0 25 ["Trial"] 0
June 25, 2021 convert 0 June 25, 2021 July 24, 2021 0 25 ["Trial"] 0
June 25, 2021 convert 52.61 June 25, 2021 July 24, 2021 52.61 25 1,315.25

Example breakdown

  1. Initial trial purchase: The first reconciliation line item reflects the purchase of the free trial subscription, which has no cost. Verify the Total (costs) and the ProductQualifiers.

  2. Upgrade to paid version: The second reconciliation line item shows the trial subscription being canceled and upgraded to the paid version on the same day.

  3. Paid subscription charge: The third reconciliation line item indicates a charge of EUR 1,315.25 for the paid subscription from June 25, 2021, to July 24, 2021, covering a total of 30 days.

    • Total (Charge) = EffectiveUnitPrice (52.61 / 30 * 30) * BillableQuantity (25) = 1,315.25.

The final amounts might vary when taxes and exchange rates are applied, potentially increasing or decreasing the total charges and refunds.

By following this guide, you can clearly understand and manage your subscription billing after switching to paid version from trial.

Determining the total number of licenses after adjustments

Calculating total licenses accurately is crucial for effectively managing subscriptions. Here's a streamlined process using Contoso as an example to illustrate this calculation methodically.

Example

Let's say, you initially purchased 10 licenses of an annual "Microsoft 365 Business Standard" subscription with a monthly billing plan for your customer Contoso on March 5, 2022. Throughout the billing period, you made several changes to the license count based on their team size and project requirements.

  • March 5: Purchased 10 licenses of "Microsoft 365 Business Standard."

  • March 7: Added 5 licenses.

  • March 10: Added 10 licenses.

  • March 12: Removed two licenses.

  • March 14: Removed three licenses.

  • March 25: Added 10 licenses.

  • March 27: Upgraded five licenses to Office 365 E1.

To determine the total number of licenses after adjustments for the Microsoft 365 Business Standard subscription purchased for Contoso, follow these steps:

Step-by-step calculation process

  1. Identify the Initial transaction:

    • Search for the initial transaction in the billing line items where ChargeType is "new" or "cycleCharge" or "renew" for ongoing charge cycle.
    • Ensure ProductName or SkuName matches "Microsoft 365 Business Standard."
    • Note the OrderDate and SubscriptionId for this transaction. In this case, the OrderDate is March 5, 2022.

  2. Track Subsequent Changes:

    • Identify all line items related to this subscription by using the SubscriptionId.
    • For each change (additions or removals), note the ChargeType, BillableQuantity, and EffectiveUnitPrice.

  3. Handle Upgrades:

    • Treat the upgrade of five licenses to Office 365 E1 as both a removal and an addition. Remove the old licenses and add the new ones in separate line items.

  4. Sum positive adjustments:

    • Sum the BillableQuantity for all line items with a positive EffectiveUnitPrice from the OrderDate (from step 1) onwards. This step includes all licenses added during the billing period.

      • Initial purchase: 10 licenses

      • March 7 addition: 5 licenses

      • March 10 addition: 10 licenses

      • March 25 addition: 10 licenses

      • March 27 upgrade to Office 365 E1: 5 licenses

    • We get a positive total of 40 licenses.

  5. Sum negative adjustments:

    • Sum the BillableQuantity for all line items with a negative EffectiveUnitPrice (excluding "customerCredit") from the OrderDate onwards. This step includes all licenses removed during the billing period.

      • March 12 removal: 2 licenses

        • March 14 removal: 3 licenses

        • March 27 upgrade to Office 365 E1: 5 licenses

      • We get a negative total of 10 licenses.

  6. Calculate net licenses:

    • Subtract the total removed licenses (from step 5) from the total added licenses (from step 4) to get the net licenses billed for the period.

    • Total = Sum of positive adjustments - Sum of negative adjustments
In this case: 40 - 10 = 30 total licenses

By following these steps, systematically track all changes and accurately determine the total number of licenses billed for the period after all adjustments. This approach ensures clarity and helps in managing subscriptions effectively.

Considerations for Different Billing Plans

This method works well for monthly billing plans, as adjustments are typically reflected in each billing cycle. For annual or one-time billed subscriptions, examine each line item individually when changes occur, as billing patterns and adjustment calculations vary.

Reconciliation line items in the March billing period after adjusting and upgrading the license count:

OrderDate ProductName ChargeType UnitPrice BillableQuantity EffectiveUnitPrice Total SubscriptionId ChargeStartDate ChargeEndDate ReferenceId
March 5, 2022 Microsoft 365 Business Standard new 12 10 12.00 120 284b0ff0-0e74-4f65-cb23-f8ad95867994 March 5, 2022 April 4, 2022 7d71c595-4635-40d1-a9e2-b34e63b01764
March 7, 2022 Microsoft 365 Business Standard addQuantity 12 10 –11.23 –112.25 284b0ff0-0e74-4f65-cb23-f8ad95867994 March 7, 2022 April 4, 2022 12d33e18-061e-4040-ad77-fcd77c1a9943
March 7, 2022 Microsoft 365 Business Standard addQuantity 12 15 11.23 168.38 284b0ff0-0e74-4f65-cb23-f8ad95867994 March 7, 2022 April 4, 2022 12d33e18-061e-4040-ad77-fcd77c1a9943
March 10, 2022 Microsoft 365 Business Standard addQuantity 12 15 –10.06 –150.96 284b0ff0-0e74-4f65-cb23-f8ad95867994 March 10, 2022 April 4, 2022 dc2a0a41-6a51-4837-8956-af5ffd92b094
March 10, 2022 Microsoft 365 Business Standard addQuantity 12 25 10.06 251.61 284b0ff0-0e74-4f65-cb23-f8ad95867994 March 10, 2022 April 4, 2022 dc2a0a41-6a51-4837-8956-af5ffd92b094
March 12, 2022 Microsoft 365 Business Standard removeQuantity 12 25 –9.29 –232.25 284b0ff0-0e74-4f65-cb23-f8ad95867994 March 12, 2022 April 4, 2022 2f8965ff-512b-4233-9a74-1f54a6ad71d0
March 12, 2022 Microsoft 365 Business Standard removeQuantity 12 23 9.29 213.67 284b0ff0-0e74-4f65-cb23-f8ad95867994 March 12, 2022 April 4, 2022 2f8965ff-512b-4233-9a74-1f54a6ad71d0
March 14, 2022 Microsoft 365 Business Standard removeQuantity 12 23 –8.52 –195.87 284b0ff0-0e74-4f65-cb23-f8ad95867994 March 14, 2022 April 4, 2022 73b3dc36-f36d-4bbf-af8f-30c9b73ac4f6
March 14, 2022 Microsoft 365 Business Standard removeQuantity 12 20 8.52 170.32 284b0ff0-0e74-4f65-cb23-f8ad95867994 March 14, 2022 April 4, 2022 73b3dc36-f36d-4bbf-af8f-30c9b73ac4f6
March 25, 2022 Microsoft 365 Business Standard addQuantity 12 20 –4.26 –85.16 284b0ff0-0e74-4f65-cb23-f8ad95867994 March 25, 2022 April 4, 2022 6759acd5-a8a9-4402-94b7-803baa64a78e
March 25, 2022 Microsoft 365 Business Standard addQuantity 12 30 4.26 127.74 284b0ff0-0e74-4f65-cb23-f8ad95867994 March 25, 2022 April 4, 2022 6759acd5-a8a9-4402-94b7-803baa64a78e
March 27, 2022 Microsoft 365 Business Standard convert 12 5 –3.48 –17.4 284b0ff0-0e74-4f65-cb23-f8ad95867994 March 27, 2022 April 4, 2022 a11af6ef-8523-4eba-b1fa-fe5069dedea7
March 27, 2022 Office 365 E1 convert 10 5 2.90 14.50 c30e1e5c-a20f-4640-83d1-1f7a3e664b43 March 27, 2022 April 4, 2022 a11af6ef-8523-4eba-b1fa-fe5069dedea7

How to reconcile transactions after changing billing plans

You can switch your billing plan after the first charge cycle ends. For instance, if you initially opted for yearly payments, you could change to monthly payments after one year, at the end of the first charge cycle or the first year.

For example, if you purchased 10 licenses of a three-year "Dynamics 365 Commerce" subscription on September 20, 2021, with an annual billing plan, you could switch to monthly billing plan on September 20, 2022. The next month, your bill would show the monthly charge and mark it as "convert" for ChargeType.

Note

Switching your billing plan only changes the billing frequency and amount for the charge cycle, not the subscription start date, and subscription end date.

Reconciliation line items when you switch from annual to monthly billing plan:

ChargeType BillableQuantity UnitPrice EffectiveUnitPrice Total ChargeStartDate ChargeEndDate BillingFrequency
new 10 250 250 2,500 September 20, 2021 September 19, 2022 Annual
convert 10 20 20 200 September 20, 2022 October 19, 2022 Monthly

Reconciliation line items when you switch from monthly to annual billing plan:

ChargeType BillableQuantity UnitPrice EffectiveUnitPrice Total ChargeStartDate ChargeEndDate BillingFrequency
new 10 20 20 200 September 20, 2021 October 19, 2021 Monthly
convert 10 250 229.16 2291.6 October 20, 2021 September 19, 2022 Annual

How do I validate charges in legacy and new commerce reconciliation data after migrating to new commerce?

When you switch from legacy to a new commerce subscription within a billing period, you receive two invoices.

First, you get a refund for the amount paid in advance. Rest assured; your service remains uninterrupted after migration.

To clarify this process, let's break down an example:

Suppose you purchased one license of an annual Microsoft Office 365 E3 legacy subscription on July 21, 2021, with a monthly billing plan. On January 24, 2022, you migrated to a corresponding new commerce subscription with the same billing term and billing plan.

Here's how the billing works:

  • The legacy invoice covers charges up to and including January 23, 2022.
  • From January 24, 2022, onward, your new commerce subscription charges appear on the new commerce invoice.

Important details

Number of licenses: One

Monthly unit price of a license: USD 16

Legacy billing anniversary date: 21st day of each month

This streamlined approach ensures clarity and continuity in your billing, making your migration as smooth as possible.

Legacy license-based invoice reconciliation line items of January 2022 billing period:

ProductName ChargeType UnitPrice SubscriptionStartDate SubscriptionEndDate BillingFrequency ChargeStartDate ChargeEndDate
Microsoft Office 365 E3 Prorate fees when purchase 16 July 21, 2021 July 2, 2022 Monthly January 2, 2022 February 20, 2022

Legacy license-based invoice reconciliation line items of February 2022 billing period:

ProductName ChargeType UnitPrice SubscriptionStartDate SubscriptionEndDate BillingFrequency ChargeStartDate ChargeEndDate
Microsoft Office 365 E3 Prorate fees when purchase 16 July 21, 2021 July 21/2022 Monthly February 21/2022 March 20, 2022
Microsoft Office 365 E3 Cancel fee -16 July 21, 2021 July 21/2022 Monthly February 21/2022 March 20, 2022
Microsoft Office 365 E3 Cancel fee -13.93 July 21, 2021 July 21/2022 Monthly January 25, 2022 February 20, 2022

New commerce invoice reconciliation line items of January 2022 billing period:

For the January billing period, charges are divided between legacy and new commerce invoices on a prorated basis.

ProductName ChargeType UnitPrice EffectiveUnitPrice SubscriptionStartDate SubscriptionEndDate BillingFrequency ChargeStartDate ChargeEndDate
Microsoft Office 365 E3 new 16 13.93 January 25, 2022 July 20, 2022 Monthly January 25, 2022 February 20, 2022

Here's how your bill changes if you switch to an annual billing plan:

New commerce invoice reconciliation line items of January 2022 billing period:

ProductName ChargeType UnitPrice EffectiveUnitPrice SubscriptionStartDate SubscriptionEndDate BillingFrequency ChargeStartDate ChargeEndDate
Microsoft Office 365 E3 new 192 93.10 January 25, 2022 July 20, 2022 January 25, 2022 July 20, 2022

When you switch to a new annual billing term and make an upfront payment during migration, you see these line items.

New commerce invoice reconciliation line items of January 2022 billing period:

ProductName ChargeType UnitPrice EffectiveUnitPrice SubscriptionStartDate SubscriptionEndDate BillingFrequency ChargeStartDate ChargeEndDate
Microsoft Office 365 E3 new 192 192 January 25, 2022 January 24, 2023 January 25, 2022 January 24, 2023

When you switch to a new annual billing term and a monthly billing plan during migration, you see these line items.

New commerce invoice reconciliation line items of January 2022 billing period:

ProductName ChargeType UnitPrice EffectiveUnitPrice SubscriptionStartDate SubscriptionEndDate BillingFrequency ChargeStartDate ChargeEndDate
Microsoft Office 365 E3 new 16 16 January 25, 2022 January 24, 2023 Monthly January 25, 2022 February 24, 2022

Embrace this opportunity to streamline your financial planning and maximize your resources.

How to verify the license-based subscription transfer between partners in the reconciliation data?

To ensure smooth verification of license-based subscription transfers, follow these steps in the reconciliation data for each partner. Reconciliation data is crucial as it helps track and verify all transactions related to subscription transfers. For more information about the transfer, see transfer new commerce license-based subscriptions from one transacting CSP partner to another.

  • Check subscription cancellation and repurchase: The transfer process involves two main steps: first, the subscription with the source or original partner is canceled; second, the subscription is repurchased for the target or new partner. As a result, the subscription IDs change post-transfer. For example, if Partner A transfers a subscription to Partner B, the subscription is canceled for Partner A, and a new subscription with new ID is created for Partner B.

  • Maintain subscription properties: The subscription retains its key properties upon transfer, such as autorenewal settings. For instance, if the subscription was set to autorenewal and had specific settings, these properties continue to apply with the target partner.

  • Billing term and plan unchanged during transfer: The existing billing term and plan remain the same throughout the transfer. For example, if the source partner had an annual subscription with monthly billing plan and transferred it after five months, the target partner should continue the remaining seven months with monthly payments.

  • Subscription cancellation for source partner: The subscription appears as canceled for the source partner. In their reconciliation data, the ChargeType attribute, which indicates the type of charge applied to the subscription, should be listed as "cancelImmediate." For example, if Partner A cancels a subscription on November 1, 2024, the reconciliation data should show "cancelImmediate" under ChargeType for that subscription starting from November 1, 2024.

  • Consistent subscription dates for source partner: The SubscriptionStartDate and SubscriptionEndDate remain unchanged. For instance, if the source partner bought an annual subscription on May 10, 2024, with a monthly billing plan, the SubscriptionStartDate would be May 10, 2024, and the SubscriptionEndDate would be May 9, 2025. The subscription start and end dates remain unchanged even after the transfer.

  • Prorated charges and transfer date: The transfer date becomes the OrderDate for the canceled subscription, with prorated charges based on the billing plan and transfer date. For instance, if the subscription was transferred on November 1, 2024, the effective cancellation date remains November 1, 2024. Refunds are applicable for the period from November 1, 2024, to November 9, 2024, as the monthly billing cycle spans from October 10 to November 9. Prorated charges are calculated based on the number of days between these dates and the unit price. The ChargeStartDate for the subscription for the source partner should be November 1, 2024, and the ChargeEndDate should be November 9, 2024.

  • Target partner's subscription and charges start date: For the target partner, the subscription and charges begin on the transfer date. Verify that the ChargeStartDate and SubscriptionStartDate, in their reconciliation data are both November 1, 2024, with the SubscriptionEndDate as May 9, 2025.

  • Prorated first bill for the target partner: The first bill for the target partner is prorated based on the billing plan, running from November 1, 2024, to November 9, 2024. Subsequent bills follow the regular monthly cycle from November 10, 2024, to December 9, 2024, and continue on a monthly basis until May 9, 2025.

By following these steps, you ensure accurate verification of subscription transfers between partners, maintaining consistency and transparency in your reconciliation data.

Source partner's reconciliation data:

Recon PartnerId CustomerName OrderDate ProductName ChargeType UnitPrice BillableQuantity Subtotal TaxTotal Total Currency SubscriptionId ChargeStartDate ChargeEndDate EffectiveUnitPrice SubscriptionStartDate SubscriptionEndDate
First billing period 11111111-aaaa-11aa-aa11-111111111111 Contoso May 10, 2024 Microsoft 365 E3 new 45.6 3 136.8 0 136.8 USD 8691daa7-4760-4b4a-c193-8c1755b44ab5 May 10, 2024 Jun 09, 2024 45.6 May 10, 2024 May 09, 2025
Billing period before the transfer 11111111-aaaa-11aa-aa11-111111111111 Contoso Oct 10, 2024 Microsoft 365 E3 cycleCharge 45.6 3 136.8 0 136.8 USD 8691daa7-4760-4b4a-c193-8c1755b44ab5 Oct 10, 2024 Nov 09, 2024 45.6 May 10, 2024 May 09, 2025
Billing period after the transfer 11111111-aaaa-11aa-aa11-111111111111 Contoso Nov 01, 2024 Microsoft 365 E3 cancelImmediate 45.6 3 –45.6 0 –45.6 USD 8691daa7-4760-4b4a-c193-8c1755b44ab5 Nov 01, 2024 Nov 09, 2024 –15.2 May 10, 2024 May 09, 2025

Target partner's reconciliation data:

Recon PartnerId CustomerName OrderDate ProductName ChargeType UnitPrice BillableQuantity Subtotal TaxTotal Total Currency SubscriptionId ChargeStartDate ChargeEndDate EffectiveUnitPrice SubscriptionStartDate SubscriptionEndDate
Billing period after the transfer 22222222-bbbb-22bb-bb22-222222222222 Contoso Nov 01, 2024 Microsoft 365 E3 new 45.6 3 45.6 0 45.6 USD 5d3a7501-3b4a-4012-db07-ebc4192985b7 Nov 01, 2024 Nov 09, 2024 15.2 Nov 01, 2024 May 09, 2025
Next billing period 22222222-bbbb-22bb-bb22-222222222222 Contoso Nov 10, 2024 Microsoft 365 E3 cycleCharge 45.6 3 136.8 0 136.8 USD 5d3a7501-3b4a-4012-db07-ebc4192985b7 Nov 10, 2024 Dec 09, 2024 45.6 Nov 01, 2024 May 09, 2025

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