Annual Term on Monthly Billing - New Commerce Experience (NCE)

Annual Term (Commitment) on Monthly Billing/Payment

Monthly Billing on Annual Term is an ordering function offered on request to Crayon Customers with a strong payment history. The offering is not available to all Customers, If a customer requires to access this function, they need to contact their Crayon Account Manager, who will initiate a qualification process with Crayon's Finance team. The Finance team will qualify the customer through Crayon's Finance Processes and enable the functionality once approved. For more information on the availability of this functionality, please contact your Crayon Account Manager.

 

Billing

1. At the time of purchase, the annual product pricing will be recorded and locked. And on a monthly basis, the charges for this annual term monthly billing subscription will appear on the monthly Microsoft CSP invoice (as legacy billing occurred). 
    
   
   Note:  The annual price is locked at the source price, i.e., USD, so FX rates would also alter the pricing monthly when there is a fluctuation of FX.

2. And on a monthly basis, the charges for this annual term monthly billing subscription will appear on the monthly Microsoft CSP invoice (as legacy billing occurred). The unit price value shown on the invoice will display as the monthly value of the annual price (using the specific month's FX rate); however, the subtotal value of the line item will be recorded as pro-rata value of the monthly price based on the days active in the month.
   
   The monthly billing invoice will be generated between the 1^st and 3^rd of each month and sent to your Accounts Department (based on the contact details stored within the PRISM portal). The monthly invoice will contain all charges for all monthly billing subscriptions under Microsoft CSP from the previous month. For example: between the 1^st and 3^rd of April 2022, you will receive an invoice with the March 2022 consumption charges. The invoice will contain a mixture of any of the following subscription types you have provisioned:

1. Legacy Monthly Subscriptions

2. NCE Monthly Term on Monthly Billing Subscriptions

3. NCE Annual Term on Monthly Billing Subscriptions The monthly invoice will include all/any subscriptions that were active during any point in March 2022; charges are pro-rata’ed from the subscription start date. The invoice PDF will provide a line-item view of each subscription; additional information on retail pricing and the subscriptions can be found in the Invoice CSV file located under the Invoice tab in PRISM. 

The monthly invoice will include all/any subscriptions that were active during any point in the previous period (for example March 2022); charge start dates are pro-rata'ed from the date the subscription was provisioned. The invoice PDF will provide a line-item view of each subscription; additional information on retail pricing and the subscriptions can be found in the Invoice CSV file located under the Invoice tab in PRISM. 

Example #1 with no FX rates (AUD, JPY, NZD, KRW, USD): a product with an annual (12 months) price of AUD $892.62, that is active for all of March 2022 would be charged a unit price of $74.39.  The monthly unit value of the charge would be Annual Unit Price / Number of months in the period; example: $892.62 /12 = $74.39

 

Example #2, quantity increase with no FX rates (AUD, JPY, NZD, KRW, USD): a product with an annual price of AUD $1,000.00, where the quantity was 1 for the 1st to 16th of March 2022, then increased quantity from the 17th of March through to 31st of March 2022 to 2. Therefore there would be two line items on the monthly invoice. The monthly unit value of the charge would be Annual Unit Price / Number of months in the period; example: $1,000.00 /12 = $83.34. The line item calculation method is Unit Price * Quantity * (Billable Ratio). Where a billable ratio is the number of days the subscription is active for in the month divided by the number of days in the month.  

Line Item #1 (1st March - 16th March 2022) = 83.34*1*(16/31) = $43.02

Line Item #2 (17th March - 31st March 2022) = 83.34*2*(15/31) = $80.66

 

Example #3 with FX rates (USD-to-Local Currency): a product with an annual price of USD$850.00, where the FX rate was 4.45 for the month of March 2022. The monthly unit value of the charge would be (USD Annual Unit Price * FX Rate) / Number of months in the period; example: ($850.00*4.45) /12 = 315.21

 

Example #4, quantity increase with FX rates (USD-to-Local Currency): a product with an annual price of USD$1000.00, where the FX rate was 1.52 for the month of March 2022 where the quantity was 1 for the 1st to the 12th of March 2022, then increased quantity from the 13th of March through to 31st of March 2022 to 2. The monthly unit value of the charge would be (USD Annual Unit Price * FX Rate) / Number of months in the period; example: ($850.00*4.45) /12 = 315.21. The line item calculation method is Unit Price * Quantity * (Billable Ratio). Where a billable ratio is the number of days the subscription is active for in the month divided by the number of days in the month.  

Line Item #1 (1st March - 12th March 2022) = 315.21*1*(12/31) = $122.02

Line Item #2 (13th March - 31st March 2022) = 315.21*2*(19/31) = $386.39

 

Provisioning Subscriptions (Monthly Billing on Annual Term):

To order an Annual Term subscription with Monthly Billing, Please follow the below steps:

1. Within PRISM, navigate to the Microsoft CSP program tile.
   
   
   
2. Select the tenant you would like to provision against from the tenant list by selecting Manage from the list of tenants.
   
   
   
   
3. Select Add New Subscription from the options available
   
4. On selecting Add New Subscription,  Have the billing filter at the top of the screen set to Monthly (selected option will highlight in green)
   
5. Locate the New Commerce Experience (NCE) SKU you wish to add
6. Use the + icon to add the quantity required
   
7. Once the quantity is added, a Terms drop-down list will appear. Select the term based on requirements
   
   
   
   
   Choosing Term "1 Months" = subscription will have a 1-month commitment and billing term i.e. If provisioned on the 14th of March 2022, the subscription term is 30 days, so the next renewal date is the 13th of April 2022, you will receive a monthly bill for this subscription.
   Choosing Term "1 Years" = subscription will have a 1-year commitment and 1-month billing term i.e. If provisioned on the 14th of March 2022, the subscription term is 365 days, so the next renewal date is 13th of March 2023, you will receive a monthly bill for this subscription for a 12 month period.
8. Confirm order details are correct and select Submit Order
   
9. In the top right-hand corner, you will be presented with several notifications as the subscription provisions in Microsoft’s Partner Centre.
   
   
   
10. Whilst the order is provisioning in Microsoft’s Partner Centre, you will see the details under the Pending Order heading
    
11. And once provisioning is fully completed, the subscription will be visible under the Subscriptions heading.
    

Managing Subscriptions

For an annual term (commitment) with monthly payment subscriptions, subscriptions can be increased at any point in time and decreased within the 7-day cancellation window. Beyond the 7-day cancellation window, quantity decrease is not available. Please see the managing subscriptions guide found under the annual term with the annual payment user guide found here.

 

Note: Once a subscription is provisioned and active, the subscription billing would have started. If cancellation occurs within the 7-day cancellation window, there would be pro-rata charges applied for the subscription until cancellation. All subscriptions after the 7-day cancellation window will be invoiced and charged for the duration of the contractual term, including any quantity increases.

 

Limitations/Notes

Whilst we continue to build and improve functionality, here is a list of the known terminology or functionality limitations:

Section "How would you like to be billed for your subscriptions" refers to the billing period of your subscription

 

"Terms" refers to the commitment term of the subscription
1 Months = a subscription with a monthly term (i.e., purchased on the 14th of January 2022 and then renewal date is 13th of February 2022)
1 Year = a subscription with a 1 year/annual term (e.g., purchased on the 14th of January 2022 and then renewal date is 13th of January 2023) 

Provisioning screen price shows as "license/mth" however should state "license/year", pricing shown on this screen when provisioning an annual term on monthly billing subscription is the annual term price.

Provisioning Screen Order Summary shows as "total monthly price" however should state "total commitment term price", pricing shown on this screen when provisioning an annual term on monthly billing subscription is the annual term price.