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In our interworks.cloud platform the Azure service must be defined as a pay-per-use product with consumption based billing. In addition, we must define the CSP billing date on the product, since Microsoft always uses this date as the anniversary date for the Azure billing cycle.


Definition of the Azure Product


The definition of the product is very simple since you only need to define the correct product type and to set its charge type to pay-per-use.

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Which is the Sell Price of the Azure Product?

There isn't a single sell price for the Azure product because what we charge for the Azure service are the consumption of the resources. Depending of what the customer has deployed in Azure, tens or hundreds of resources may be charged to the customer. The sell price for these resources is Microsoft's suggested retail price.


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Define the correct billing day for your Azure Product

The Azure subscriptions must be billed the day that Microsoft bills the CSP. Follow the instructions described in page Billing an Azure Subscription for setting the correct billing day for your Azure product.



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Set Discounts for your Resellers

If you are an indirect CSP and you want to set discounts for the Azure service to your resellers. you must add the Azure product in resellers pricelists. The process is the following

  • Locate your reseller pricelist in Billing > Price Lists
  • Go to Products tabs and select Quick Add > Products.

     

    In the pop-up form search for the Microsoft Azure product

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  • Select the action Same pricing rule for defining the discount you give for Azure product in the selected price list. 
    1. Set the Pricing Method to Percent of Sell Price
    2. Set in Amount($) the discount you want

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  • The discount you have defined in your price list will be applied to the retail prices Microsoft has defined for the Azure resources.
    For example, the Azure resource "A0 VM, Linux, Australia East, standard pricing" has ERP price €18,20/month and the cost for an indirect CSP will be €15,50/month (~ 15% discount, the typical discount Microsoft gives to CPSs). If you define in your price list that you give 10% discount, your reseller will purchase this resource at 18.20 - 10% = €16.38