Charges for CSP monthly billing type

Billing type is defined by the Plan Class (see Managing Plan Classes) and applies to all Account types (see Account Types) included in the Plan class. An Account may use Prepay or Postpay payment model (see Creating an Account Class). This article covers only the cases of Charges generation when an Account uses the Prepay payment model.

CSP monthly billing type applies to the Subscriptions that are provided within the Microsoft CSP program. Microsoft CSP Subscription is an agreement between the Operator and the Customer, on the basis of which the Operator provides the Customer with the Microsoft cloud services, and the Customer uses these services and pays for them. Terms of provisioning and the pricing model for the Service are established in the Plan and the Plan class in accordance with the Microsoft billing rules (see https://partner.microsoft.com/en-US/Solutions/cloud-reseller-overview).

General rules for CSP monthly billing type

Subscriptions with the CSP monthly billing type are provided with a free period with a duration up to 30 days. The free period starts from the date of the Subscription ordering and ends at the nearest Billing day. No payments are taken during the free period.

All Subscription Charges are generated at the moment of the Subscription ordering with the Opened statuses.

Only the Recurring fee Charges for the additional Resources usage are generated for the CSP monthly billing type.

Setup fee and Renewal fee Charges for CSP monthly billing type

There are no Setup fee, Renewal fee, and Transfer fee Charges for Microsoft CSP Subscriptions because corresponding fees are not applicable.

Recurring fee Charges for CSP monthly billing type

At the moment of the Order creation, 12 Recurring fee Charges for each Resource type are generated. Charges are created with the following attributes:

  • Status: Opened.
  • Period: one of 12 Subscription Billing periods.
  • Created at: the date of switching to the paid period of the Subscription.
  • Close date: the end date of the Charge period.
  • Amount: a monthly fee for one unit of Resource usage multiplied by a number of ordered units.

There are no changes in the Charges attributes during the free period.

When the paid period of Subscription starts, only the amounts of the Charges for the nearest month of service usage are blocked on the Account balance. Charges for the nearest past month of service provisioning are closing on a monthly basis.

Billing process starts before the Billing day, and platform checks the funds at the Account balance (taking into account the amount of the Credit limit) to renew Subscriptions for the future periods:

  • If the amount of money at the Account balance (taking into account the amount of the Credit limit) is greater than or equal to the price of the Subscription renewal at the moment of the funds blocking for the future Billing period, then the system will block the funds at the Account balance. The amount of blocked funds is equal to the Subscription price per month.
  • If the amount of money at the Account balance (taking into account the amount of the Credit limit) is less than the price of the Subscription renewal at the moment of the funds blocking for the future Billing period, then the system will stop the Subscription.
  • When the Account has several Microsoft CSP Subscriptions, the renewal is carried out sequentially. Therefore, one the Microsoft CSP Subscriptions might be active, while the others are stopped.

Subscription Order

When the Subscription is ordered, the Recurring fee Charges for the additional Resources purchase are generated.

The example of the Microsoft CSP Subscription with the CSP monthly billing type is given below:

Let's assume that the Billing day is set as the 1st day of each month.

  1. An annual Subscription is ordered 15.11.2017. At that moment, the following occurs:
    1. Free Subscription period is created. It is set as from 15.11.2017 to 30.11.2017 inclusive.
    2. The date of switching to the paid Subscription period is set as the nearest Billing day — 01.12.2017.
    3. Charges No. 1-12 for each Billing period during the whole paid period of the Subscription are generated.
    4. Charges No. 1-12 are in the Opened status.
  2. At the nearest Billing day (in this example it is 01.12.2017), the following occurs:
    1. The paid period of the Subscription starts.
    2. Charge No. 1 receives the Blocked status.
    3. Charge No. 1 amount is blocked at the Account balance.
  3. In each subsequent Billing day up to the 12th, inclusive:
    1. A Charge with the Blocked status receives the Closed status, and the corresponding amount is debited from the Account balance.
    2. The next Charge receives the Blocked status, and the corresponding amount is blocked at the Account balance.
  4. At the Billing day 13, which is equal to the start date of the paid period of the Subscription + one year (01.12.2018 in the example):
    1. Charge No. 13 receives the Closed status.
    2. The amount of the Charge No. 13 is debited from the Account balance.
    3. Subscription stops.

Creation of an Order for Resources amount increasing during the paid period of the Subscription

Recurring fee Charges are generated when additional Resources are ordered after the end of the free period. Separate Charges are generated for each Resource type.

Recurring fee Charges for each type of additional Resources are generated by the same rules as Recurring fee Charges for Resources that were included in the Subscription purchase Order, except for the Charge for the current Billing period. Differences of the current Charge generation are described in Charges default attributes.


Subscription additional Resource amount reducing

When the additional Resource amount is reduced, a typical Charges splitting occurs, which is described in the Splitting of Charges when an amount of Subscription Resources is reduced article.

Subscription stop and activation

When the Subscription is stopped, the typical Charges splitting occurs, which is described in the Splitting of Charges when a Subscription is stopped article.

When the Subscription is activated the following happens:

  1. The period of a Charge for the current Billing period changes: the start date of the Charge period becomes equal to the Subscription activation date.
  2. The amount of a Charge for the current Billing period changes: it becomes equal to the product of the Recurring fee for the Resource (Subscription) per month by the number of days in the Charge period divided by the number of days in the month.
  3. The discount of a Charge for the current Billing period changes: it becomes proportional to the new amount of the Charge.
  4. The Charge for the current Billing period changes its status from Opened to Blocked.
  5. The amount of the Charge is blocked at the Account balance.

Subscription Renewal

When the Subscription renewal Order is submitted, Recurring fee Charges for the additional Resources renewal are generated.

The generation and attributes changing of the Charges of this type are similar to the generation and attributes changing of the Recurring fee Charges for additional Resources purchase (see above).

Subscription deleting

When the Subscription is deleted, the Charges splitting occurs, which is described in the Splitting of Charges when a Subscription is deleted article.