The Microsoft PEC Checkup section in the Operator Control Panel is designed for daily monitoring of Partner Earned Credit (PEC) for Microsoft Azure Plan subscriptions and for assessing their margin for a selected financial period.
The page displays a list of subscriptions, PEC status, PEC coverage, subscription amount, net cost, and margin indicators calculated based on Microsoft reconciliation files and daily usage data.
Purpose of the function
The function allows the operator to control whether PEC is applied to a Microsoft Azure Plan subscription, how much of the consumption is covered by PEC, and how PEC affects the subscription profitability.
The calculation is based on Microsoft data and takes into account not only PEC but also the markup coefficient specified in the subscription, while taxes do not affect the final margin value.
Microsoft PEC Check data
On the Microsoft PEC Checkup page, the following columns and metrics can be displayed for each Microsoft Azure Plan subscription:
|
Term |
Description |
|---|---|
|
Subscription |
ID and name of the Microsoft Azure Plan subscription. |
|
Account |
a client of the ActivePlatform system. |
|
PEC status |
indicates whether PEC was applied to the subscription usage data for the last checked day; possible values: yes, no, partially. |
|
PEC coverage |
share of subscription consumption covered by PEC for the selected financial period, from 0% to 100%. |
|
Taxes amount |
the total amount of taxes calculated for the charges within the selected financial period. |
|
Subscription amount |
total billed amount for the subscription for the financial period. |
|
Discount |
a reduction of the base price expressed as an amount in the currency. |
|
Manager |
an employee responsible for planning, organizing, and controlling the customer’s workflows and resources. |
|
Markup |
the part of the product or service price that represents the difference between the selling price and the cost price and is used to cover expenses and generate profit. |
|
Netcost |
the netcost of the subscription for the financial period. |
|
Margin |
a relative indicator that shows what share of the subscription revenue is represented by margin (profit after deducting direct costs). |
|
Margin from PEC |
the portion of the margin generated solely due to PEC. |
|
Last billed date |
the date when the data in the platform was last checked for relevance and accuracy. |
|
Updated at |
the date when the data in the platform was last changed or synchronized. |
Daily PEC check
During the daily check, the system analyzes daily usage data for Microsoft Azure Plan and determines whether PEC was applied to the subscription and how much consumption was covered by PEC.
The check results are used to fill in the PEC status and PEC coverage columns, and also to calculate the subscription profitability metrics for the selected financial period.
During the daily PEC update, the system saves the current markup coefficient from the subscription into the Markup column.
After the end of the financial period, the markup value recorded on the date of the last check in this period is used for analysis.
Net cost and margin calculation
Net cost and margin are calculated based on Microsoft reconciliation files, such as BilledOneTimeInvoiceLineItems, and the currency exchange rate if the subscription currency differs from the reseller currency in the platform.
The calculation uses the EffectiveUnitPrice, BillableQuantity, and PCToBCExchangeRate fields.
A simplified formula for calculating the PEC amount in the platform currency:
Total_PEC_amount=∑(EffectiveUnitPrice×BillableQuantity×PCToBCExchangeRate)×platform_currency_rate
When PEC is applied to a line, the net cost is adjusted according to the Partner Earned Credit rate so that the PEC discount is correctly reflected in the subscription economics.
For this purpose, division by 1−rateOfPartnerEarnedCredit1−rateOfPartnerEarnedCredit is used.
The total subscription margin is calculated taking into account the following factors:
-
margin from PEC
-
margin from the subscription markup
-
total subscription amount for the financial period
-
net cost with taxes excluded from the margin calculation
The Margin from PEC column shows the part of the margin generated only by PEC.
The Margin from markup column shows additional margin generated by the markup or discount in the subscription, so its value can be either positive or negative.
The Margin column shows the total margin of the subscription and is used instead of the previous display of PEC margin only.
Handling negative charges
When processing the final Microsoft reconciliation file with monthly data, the system takes into account not only positive lines but also negative charges, such as refunds or corrections.
Negative lines are included in the PEC calculation in the same way as positive lines so that the subscription amount and net cost match the actual charges for the financial period.
For each reconciliation file line, the amount is calculated using the following formula:
Price×BillableQuantity×PCToBCExchangeRate/(1−rateOfPartnerEarnedCredit)
The result is then converted into the platform currency using the applicable exchange rate.
If the line in the reconciliation file is negative, the resulting value will also be negative and will be correctly reflected in Subscription Amount, Net cost, and the subscription margin.
Excluding Azure Spot
When calculating PEC status and PEC coverage, daily records related to Azure Spot Virtual Machines are excluded from the monitoring dataset.
Such records are identified by the presence of the word Spot in the MeterName field, for example, NC16asT4 v3 Spot.
The Azure Spot exclusion is applied only for PEC monitoring in order to avoid incorrect PEC presence detection and distorted PEC coverage percentage for a subscription.
At the same time, Subscription Amount and Net cost values continue to be calculated based on all daily records, including Azure Spot, because charges and net cost must include the full volume of subscription consumption.