Charges for CSP monthly billing type

Billing type is defined in 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

All Subscription Charges are generated at the moment of the Subscription ordering with the New statuses. After the Order is paid, the Charges for the current Billing period receive the Blocked statuses, Charges for the future Billing periods of the Subscription receive 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, 13 Recurring fee Charges for each Resource type are generated. The amounts of the Charges No. 2-12 are fixed and are equal to the monthly price of the Subscription. Charges No. 1 and 13 are generated as described in Charges default attributes. Only the amounts of Charges for the current Billing period are blocked at the Account balance, Charges for the future Billing periods of the Subscription are in the Opened statuses. Charges for the previous Billing period are closed monthly on the next Billing day.

If the Subscription is ordered in a Billing day, then only 12 Charges are generated.

Charges are created with the following attributes:

  • Status: New.
  • Period: one of 13 Subscription Billing periods.
  • Created at: the date of the Subscription ordering.
  • Close date: the end date of the Charge period.
  • Amount: is calculated as it is described in Charges default attributes.

Billing process starts on the Billing day at around 01:00 a.m., 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 monthly cost of the Subscription, when the funds are blocked for the next Billing period, then the system blocks them. The amount of blocked funds is equal to the Subscription price per month. The Subscription is in Active status.
  • If the amount of money at the Account balance (taking into account the amount of the Credit limit) is lesser than the price of the Subscription renewal when the funds are blocked 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

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 and is paid for on 15.12.2017. At that moment, the following occurs:
    1. Charges No. 1-13 for each Billing period during the whole paid period of the Subscription are generated.
    2. The Charge No. 1 receives the Blocked status.
    3. The amount of the Charge No. 1 is blocked at the Account balance.
    4. Charges No. 2-13 are in the Opened status.
  2. At the nearest Billing day (in this example it is 01.01.2018), the following occurs:
    1. The Charge No. 1 receives the Closed status.
    2. The amount of the Charge No. 1 is debited from the Account balance.
    3. The Charge No. 2 receives the Blocked status.
    4. The amount of the Charge No. 2 is blocked at the Account balance.
    5. Charges No. 3-13 are in the Opened status.
  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. On the Subscription expiration date, which is equal to the date of Subscription ordering + one year (15.12.2018 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

Recurring fee Charges are generated when additional Resources are ordered. 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 the Subscription purchase order (see paragraph Subscription Order above).

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. Separate Charges are generated for each Resource type.

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 the Subscription purchase order (see paragraph Subscription Order 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.