New commerce experience for Microsoft 365, Dynamics 365
October 2021
Today’s Call Format
Live recorded broadcast
Please use the chat window for question submission and our facilitators will endeavor to respond to all. Will have time at the end for Q&A.
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The Presentation for today’s call is available as an attachment
Poll questions at the start and end of the call, please take time to provide feedback
Agenda
→Overview
→Price list and offer matrix
→Purchasing seat-base offers in New Commerce Experience
Terms
Promotions
Add-ons
Trials
→Subscription Management
Suspend
Cancellation
Auto-renew
Upgrades
Schedule changes
Subscription ownership limits
→Billing, Invoicing and Recon File
Invoice and reconciliation file
Monthly term Billing
Billing Scenarios
→Q&A
Poll Link
Have you reviewed the readiness Materials?
Are you leveraging APIs?
Have you started with the necessary changes across (Business/System/Process/P eople) to launch NCE?
Are you going to be ready for GA January 2022?
Why have you not reviewed the readiness Materials?
Where is your organization Today?
October 2021
Latest news
https://bit.ly/3a8U5mD
Common tasks and workflows will not be changing
Many aspects of how you do business or manage in Partner Center are not changing with the new commerce experiences.
Premium-priced monthly term subscription*** that allows cancellation or seat-count reduction as needed
Some commercial seat-based offers in new commerce will not have the monthly term option at launch; see the CSP catalog and pricing list to confirm monthly-term availability.
The CSP offers and their billing platforms
Licenses for perpetual software Windows 10 E3/E5
Marketplace SaaS offers
Marketplace usage-based offers Microsoft 365
Office 365
Server Subscriptions
Azure consumption services through the new Azure plan
Azure consumption services through the old Azure offer
Reservations
Legacy billing platform New commerce billing platform
Windows 365 EMS E3/E5
Dynamics 365 Power Platform
The CSP billing platforms evolution
Legacy billing platform New commerce billing platform
Invoice characteristics
• Currency: partner currency
• Billing period: 28-30 days up to partner billing date
Invoice characteristics
• Currency: partner currency
• Billing period: calendar month, invoice date of 8th
From October 14, 2021
Resources for Partners
Operations Readiness gallery Readiness Map
Operating Guide: Seat-Based Offers API documentation
L100/L200 Deck
Customer FAQ for CSP partners
Additional information
calls and webinars October Per user Session
Technical Resources
API documentation: New commerce experience for CSP seat-based offers
Transition a new commerce subscription Subscription resources
Update auto-renew for a commercial marketplace or new commerce
subscriptions
Purchasing new commerce license- based services
New commerce license-based pricing
© Copyright Microsoft Corporation. All rights reserved.
Price List and Offer Matrix
Price List
New commerce experience pricing for Microsoft 365, Dynamics 365, Power Platform, and Windows 365 will be available to partners both from the Partner Center and through the pricing sheet API. In Partner Center Sell > Pricing & Offers.
Note: Partners should be aware of pricing in the market their customer is in to understand the price for a particular product SKU.
Partners must get price lists in new commerce based on the country they are selling to, or the customer’s country
• Price List require the partner to select the market for the pricing they request.
• Offer Matrix is agnostic of Market.
European regional prices
All European market price lists will include pricing in all
supported currencies in the European region 6 currencies (SEK, NOK, CHF, DKK, GBP, EUR)
UK partner DE customer
• Price is based on ‘customer country’ or Germany DE
• Partner is billed in their currency (GBP)
• Partner gets the DE price list, which includes the GBP prices
• Example:
• Partner is in the Great Britain GB
• Customer is in Germany DE
Price list data mapping
Items in the existing license-based CSP experience are identified as an “offer” with an “offer id”
GUID for each item.
New commerce line items are a combination of “product,” “SKU” and “term.” Purchasing a new commerce offer submits a productid:SKUid:availablityid
Availability IDs are internal IDs partners can find in the catalog APIs.
In the existing license-based experiences, partners purchase an offer. In new commerce partners purchase a product, a SKU, and a term.
Existing New commerce Comments
A/C/D/U Not available Partners manage monthly
changes Valid-From Date EffectiveStartDate
Valid To Date EffectiveEndDate Offer Display Name SKUTitle
Offer ID Product:SKU:Availablity (term)
License Agreement Type Not available Commercial only for 10/2021
Purchase Unit UnitOfMeasure
Secondary License Type Tags:Addon End Customer Type Not available
List Price UnitPrice
ERP Price ERP Price
Material Not available New identifier for SKU in offer
matrix
Field Example Description
ProductTitle Microsoft 365 Business Basic Title of the product
ProductId CFQ7TTC0LH18 ID of the product
SKUId 001 ID of the SKU
SKUTitle Microsoft 365 Business Basic Title of the SKU
Publisher Microsoft Corporation Company publishing the offer
SKUDescription Best for businesses that need professional email, cloud file storage,
and… Description of the offer
UnitOfMeasure Currently only for azure consumption
TermDuration P1Y/P1M Length of the term
BillingPlan Annual/Monthly How often billing happens
Market US Market for the item
Currency USD Currency for the itme
UnitPrice 48 Price per unit (license)
PricingTierRangeMin If tiered pricing is supported, the minimum range for the price point
PricingTierRangeMax If tiered pricing is supported, the maximum range for the price point
EffectiveStartDate 2/1/2019 0:00 Start date for the item's price point
EffectiveEndDate 11/30/9999 23:59 End date for the item's price point
Tags License;Trial Miscellaneous tags
ERP Price 60 Estimated retail price
Offer Matrix
Partners rely on both pricing and offer matrix files for license-based offer information.
The price list includes per-market pricing for the products, SKUs, and terms to purchase.
The offer matrix includes additional data to supplement the price list such as pre-requisites, conversation paths and supported markets for all the available product SKUs.
Existing New commerce Comments
Offer Display Name SKUTitle
Durable Offer ID Product:SKU:Availablity (term) Provisioning ID ProvisioningString
Offer Type Not available
Duration Price list: Term duration Found in the price list line items Billing Frequency Price list: Billing plan Found in the price list line items
Min Seat Count MinLicenses
Max Seat Count MaxLicenses
Offer Limit AssetOwnershipLimit
Offer Limit Scope AssetOwnershipLimitType
Depends On ProductSKUPreRequisites
Can Convert To ProductSKUConversion
Offer URI Not available
LearnMoreLink Not available
Offer Display Description Description Allowed Countries AllowedCountries
© Copyright Microsoft Corporation. All rights reserved.
Purchasing seat-base offers in NCE
Today in CSP
12-month Subscription term
12- or 36-month Subscription term
Subscription terms in the new commerce experience
36-month Subscription
• Enables a customer to lock pricing for a full 36 months
• Billing options
• Monthly, Annual, Upfront
1-month Subscription
• Enables a customer to change number of
licenses month to month
• 20% more expensive than an annual
Subscription
12-month Subscription
• Regular commitment
• Billing options
• Monthly, Upfront
MONTH MONTHS MONTHS
September 2021
Subscription terms in the new commerce experience
1-month 12-month 36-month
Windows 10 Enterprise October 14, 2021 October 14, 2021 TBD
Office 365 October 14, 2021 October 14, 2021 TBD
EMS October 14, 2021 October 14, 2021 TBD
Microsoft 365 October 14, 2021 October 14, 2021 March 2022 (select offers)
Windows 365 October 14, 2021 TBD TBD
Power Platform October 14, 2021 October 14, 2021 TBD
Dynamics 365 October 14, 2021 October 14, 2021 October 14, 2021
Catalog and Discoverability
How to find new commerce offers
Decorated with “New
Commerce Experience” glyph
Catalog and Discoverability
How to find new commerce offers
Traditional and New Commerce offers both continue to be available
Promotions Overview
Global Promo Readiness Guide
Discovering promotions
The getPromotions API includes the following data for a given promotion:
• Duration of the promotion
• The % discount for the promotion
• The products and SKUs for which the promotion is available
Promotions, terms, and renewals
• Products purchased for a term with a promotion will lock in that price for the remainder of the purchased term.
• If a partner purchases an annual term with a promotion, the price would be the UnitPrice * % discount. This EffectiveUnitPrice holds true until the end of the term.
• Any additions to seats during this term will be at this EffectiveUnitPrice for the current term.
• A subscription renews to the
promotion discount price unless the promotion duration has passed, in which case the renewal will revert to the non-promotion price.
Promotions Overview – Verify eligibility
.
Promotions Overview – Verify eligibility
Promotions Overview – Verify eligibility
October 2021
Add-ons in new Commerce
October 2021
Compatible base product Subscriptions
October 2021
Add-on enforcement
This is a technical check across the whole of the customer tenant
Trials Subscriptions Free trials provide 25 licenses
Trial subscriptions can be converted to paid subscription at any time.
Free trials are for 30 days and auto-renew is On
Free trials cannot be cancelled and convert automatically to paid offers
No Trial expiration alert
Partners can choose the same SKU or an upgrade
Paid Subscription starts on the next day, term 1Y, billing monthly.
At the conversion point the 72-hour cancellation period starts when seats can be reduced
© Copyright Microsoft Corporation. All rights reserved.
Subscription Management
Pause, cancellation, and auto-renew
Pause
• Partner continues to be billed
• Subscription immediately enters “Disabled” status:
• Users can’t access services or files
• Admins can access data until the end of the Subscription term
• Subscription can be made
“Active” again
Cancellation
• Subscription immediately enters “Disabled” status:
• Users can’t access services or files
• Admins can access data for 90 days
• Cancellation cannot be reversed
Auto-renew
On:
• Subscription renews at the end of the term
• 72-hour cancellation period restarts
Off:
• Subscription does not renew at the end of the term
• Subscription enters
“Disabled” status
!
x
If the customer has multiple subscriptions of same SKU from another partner or
channel across legacy and new commerce, then the licenses will have to be manually
reassigned to those seats.
Table capturing your upgrade activity and seat assignment status
Note: Any changes made to the subscription at midterm, will delete existing scheduled changes. The UX will display a pop-up with a warning to let partners know that their action will result in scheduled changes being deleted.
Partner A
300 seats Partner B
300 seats = 600 Microsoft 365 Business Premium
+
New feature/change Current experience New commerce experience Impact and benefits
Multi-year billing plans Partners selling multi-year subscriptions
must pay monthly or upfront. Partners can also be billed annually for
multi-year subscriptions. Additional option to accommodate customers’ payment preferences.
Price list integration via API Not available Partner APIs can read monthly pricing lists instead of partner processing lists manually.
Easier automation of offer pricing within partners’ sales and billing systems.
Reconciliation file upgrades
Partners receive separate recon files once each month for license- and usage-based subscriptions.
All subscriptions are consolidated into one customizable recon file. Estimates of charges accrued during the month are provided and updated hourly. Custom file can have added filters and attributes to reduce file size for easier processing.
Increased accounting efficiency and options for partners in customer billing.
Faster downloads of files with templates that can be more easily shared with others in the organization.
Subscription ownership enforcement
Customers could buy from different partners to aggregate instances of the same SMB offer and buy multiple free trials.
Customer SKU limits will be enforced across multiple partner tenants, preventing, for example, a customer from purchasing multiple lower-cost SMB SKUs from different partners.
Prevents customers from “gaming” the system and ensures that partners will be able to maximize the revenue from each customer.
Add-ons sold separately from base offers
Add-ons could be purchased only in conjunction with purchases of the add- ons’ base SKUs and were not displayed in the CSP catalog or shopping-cart UI.
Add-ons are listed in the catalog and shopping-cart UI along with base SKUs and can be purchased separately and independently.
More flexibility and ease of purchasing for partners and customers, along with upsell opportunities for partners.
Current experience New commerce experience
Promotions pricing transparency
No automatic notification of customers when promotional reduced pricing is included in a CSP transaction.
Government and state-owned entity customers will receive an email
notification from Microsoft with details on the promotional discount and why that pricing was offered in the sale.
Provides price and discount transparency to these customers and supports anti- corruption regulations worldwide.
Prepares customers to understand this alongside partner pricing.
© Copyright Microsoft Corporation. All rights reserved.
Billing, Invoicing and Reconciliation
Modern Legacy
Offers
Azure plan
Azure reservations
Server subscriptions
Marketplace offers
Subscription services offers, such as Office 365, Dynamics, EMS, and other subscription services
Consumption offers, such as Azure (145P)
Invoice date By the end of the 8th calendar day (UTC)
Same date across partners Varies based on each partner’s CSP account billing date
Billing
Period/Cycle Calendar month: 1st to the end of month Varies. (ex) Dec 15 - Jan 14 billing cycle for a partner with Jan 15 invoice date.
Invoice files
One invoice per currency
By the end of the 8th calendar day (UTC)
Customer billing currency (moving to partner billing currency in M1)
One invoice
Partner billing date + 3 days (SLA)
Partner currency Reconciliation
files
One recon file for all modern offers
Single recon file (per currency) mapping to the invoice
One license-based recon file One usage-based recon file Open / Closed Open (daily unbilled) and Closed (billed per billing cycle) periods Only closed period
Invoice
• Billing date (8thof the month)
• Payment terms: 60 days
• Billing Period: Calendar month
• Billing invoice currency: Based on customer country currency
Reconciliation File
• One recon file for non-consumption-based offers per currency
• One recon file for consumption-based offers per currency
Office products Azure products
In one invoice reconciliation file
Unified Modern Invoice Recon File
Important attributes to note while reconciling the billing lines are Charge Start Date, Charge End Date, Effective Unit Price, Billable Quantity, Billing Frequency, Subscription Start Date, Subscription End Date, and Amount
How one-time and recurring charges are calculated
Let’s say you buy a new “Microsoft 365 Business Standard” subscription with ten licenses (seats) on October 18th for USD 10.0/month unit price with a monthly term and monthly billing.
The following billing line will appear on the reconciliation file for the October billing cycle that you will receive in November. If the subscription is not renewed, then you will never see this transaction again.
Charge Start
Date Charge End
Date Charge
Type Effective
Unit Price Billable
Quantity Amount
10/18/2021 11/17/2021 new 10.00 10 100.0
Suppose you renew it. In that case, you’ll see a new transaction with “ChargeType” set to “renew,” and the “ChargeStartDate” and “ChargeEndDate” set to 11/18/2021 and 12/17/2021, respectively.
How one-time and recurring charges are calculated
Assume you bought the same subscription but with an annual term and a monthly billing plan. In that case, you’ll see USD 100.0 charges with the same values as above until the October 2022 billing cycle, but the “ChargeType” will change to “cycleCharge.”
Assume, however, that you pay for the same subscription in advance. Here, only one billing line will appear on the reconciliation file for the October billing cycle, which you will receive in November.
Charge Start
Date Charge End
Date Charge
Type Effective
Unit Price Billable
Quantity Amount
10/18/2021 10/17/2022 new 120.00 10 1200.0
Suppose you renew it. In that case, you’ll see a new transaction with “ChargeType” set to “renew,” and the “ChargeStartDate” and “ChargeEndDate” set to 11/18/2021 and 12/17/2021, respectively.
How do I find the billing term in a reconciliation file?
The difference between the Subscription Start Date and Subscription End Date explains the billing term. You can also look into the “TermAndBillingCycle” attribute to find a suitable description.
Please see some examples below:
TermAndBillingCycle SubscriptionStartDate SubscriptionEndDate
One-Year commitment for monthly/yearly billing 10/15/2021 10/14/2022
One-year term duration 10/22/2021 10/21/2022
One-Month commitment for monthly billing 10/14/2021 11/13/2021 Three-3 Years commitment for monthly/yearly billing 10/25/2021 10/24/2024
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