This article provides some basics definitions and general transacting terms related to Microsoft Products.
Billing Cycles
Legacy billing:
- The billing period is a month but it starts on your local TD Synnex Partner Center billing anniversary date.
New commerce billing:
- The billing period is a full calendar month for all TD Synnex regions/countries
NCE Term and Billing Cycle(s)
Microsoft offers the following terms and billing cycles:
- Annual commitment, billed monthly
- Annual commitment, billed upfront upon the order date
- Monthly commitment, billed monthly
- Monthly (month to month)
- Trials
The billing term is the difference between the subscription start and end dates. In this table you see an example of the order options:
| Term and Billing Cycle | Subscription Start Date | Subscription End Date | Appears in the Billing data |
|---|---|---|---|
| One-year commitment for Monthly/yearly billing | April 15, 2021 | April 14, 2022 | Monthly |
| One-Year term duration | April 22, 2021 | April 2, 2022 | One time charge based on order date |
| One-month commitment for monthly billing | April 14, 2021 | May 13, 2021 | Monthly |
| Three-year commitment for monthly/yearly billing | May 25, 2021 | May 24, 2024 | Monthly |
Cancel Subscriptions & Add/Remove Seats
Microsoft's cancellation policy starting January 2021 is as follows:
A 72-hour cancellation with proration, based on the hour, regardless of time zone. To summarize:
0 - 24 hours; Full Refund
24 - 48 hours; 1st Day Prorated
48 - 72 hours; 2nd Day prorated
> 72 hours: Cancellation is not allowed
The platform provides the following statement, which is acknowledged during the check out process:
By clicking confirm place order, I acknowledge and agree that the order can only be cancelled with prorated refund only within first 72 hours after initial purchase or last renewal, and no cancellation will be allowed after that initial 72-hour window or last renewal for annual term subscriptions and no prorated refund will be provided if the entire term was paid upfront (more details can be found in the Microsoft Program guide available at XXXX)”
When you cancel a subscription within the allowed window, you'll receive a prorated refund for the unused billing days in the charge cycle from the day of cancelation.
When you add or remove seats, it triggers wipe (refund) and recreate (readjust) motion. It essentially means that two transactions are generated. The first one with a negative amount or refund for the remaining billing days in the charge cycle for the original quantity. The second one with a positive amount with the prorated costs for the remaining billing days for adjusted quantity.
Effective Unit Price = Unit Price / the total number of days in the charge cycle * the number for used (unused for refund) days in the charge cycle (the number of days between Charge Start date and Charge End Date)
2.8 = (3/30)*28
Cost (before tax): Effective Unit Price * Billable Quantity :
28 = 2.8 * 10