The following billing scenarios will help you understand how a product with a free period will be billed depending on the billing settings defined on account and product level. The free period is applied only to new subscriptions. Every licenses adjustments for existing subscriptions are charged in full.
#1 Scenario - Upfront Prorated Billing
Settings | Scenario |
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Customer Billing day: 1st of the month product is charged upfront: free period is enabled: Product billing cycle: monthly |
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Generated Charges:
Invoive Date | Billing Period | Quantity | Unit Price | Total | |
---|---|---|---|---|---|
JAN | 15/01 | 15/01 - 31/01 | 5 | 0.00 € | 0.00 € |
25/01 | 25/01 - 31/01 | 3 | 0.00 € | 0.00 € | |
FEB | 01/02 | 01/02 - 28/02 | 8 | 10.00 € | 80.00 € |
22/02 | 22/02 - 28/02 | 1 | 2.50 € | 2.50 € | |
MARCH | 01/03 | 01/03 - 31/03 | 9 | 10.00 € | 90.00 € |
#2 - Upfront Prorated Billing for Product under Price Protection
Settings | Scenario |
---|---|
Customer Billing day: 1st of the month product is charged upfront: free period is enabled: Product price protection: 12 months Product billing cycle: monthly |
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Generated Charges:
Invoive Date | Billing Period | Quantity | Unit Price | Total | ||
---|---|---|---|---|---|---|
Free Period | JAN 2017 | 15/01 | 15/01 - 31/01 | 5 | 0.00 € | 0.00 € |
25/01 | 25/01 - 31/01 | 3 | 0.00 € | 0.00 € | ||
Price Protection Period | FEB 2017 | 01/02 | 01/02 - 28/02 | 8 | 10.00 € | 80.00 € |
22/02 | 22/02 - 28/02 | 1 | 2.50 € | 2.50 € | ||
MARCH 2017 | 01/03 | 01/03 - 31/03 | 9 | 10.00 € | 90.00 € | |
... | ||||||
FEB 2018 | 01/02/2018 | 01/02 - 28/02 | 9 | 11.00 € | 99.00 € |
#3 - Upfront Prorated Billing with Add-ons Purchases
You can enable the free period for add-ons too. The period between the first purchase of the add-on and the next billing day of the subscription, will be free of charge for the add-on regardless how many add-on licenses you purchase during this period.
Settings | Scenario |
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Customer Billing day: 1st of the month product is charged upfront: free period is enabled: free period is enabled for add-on: Product billing cycle: monthly |
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Generated Charges:
Invoive Date | Product | Billing Period | Quantity | Unit Price | Total | |
---|---|---|---|---|---|---|
JAN | 15/01 | Office 365 Business | 15/01 - 31/01 | 5 | 0.00 € | 0.00 € |
25/01 | Office 365 Business | 25/01 - 31/01 | 3 | 0.00 € | 0.00 € | |
FEB | 01/02 | Office 365 Business | 01/02 - 28/02 | 8 | 10.00 € | 80.00 € |
22/02 | Office 365 Business | 22/02 - 28/02 | 1 | 2.50 € | 2.50 € | |
MARCH | 01/03 | Office 365 Business | 01/03 - 31/03 | 9 | 10.00 € | 90.00 € |
10/03 | Exchange Online Advanced Threat Protection | 10/03 - 31/03 | 2 | 0.00 € | 0.00 € | |
APRIL | 01/04 | Exchange Online Advanced Threat Protection | 01/04 - 30/04 | 2 | 2.00 € | 2.00 € |
01/04 | Office 365 Business | 01/04 - 30/04 | 9 | 10.00 € | 90.00 € |
#4 Upfront Billing with no Proration
Settings | Scenario |
---|---|
Customer Billing day: no specif day product is charged upfront: free period is enabled: Product billing cycle: monthly |
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Since there isn't a specific day that the customer is billed, the first billing cycle of the subscription will be a full month that will be free of charge. |
Generated Charges:
Invoive Date | Billing Period | Quantity | Unit Price | Total |
---|---|---|---|---|
1/01 | 11/01 - 10/02 | 5 | 0.00 € | 0.00 € |
25/01 | 25/01 - 10/02 | 3 | 0.00 € | 0.00 € |
11/02 | 11/02 - 10/03 | 8 | 10.00 € | 80.00 € |
22/02 | 22/02 - 10/03 | 1 | 5.50 € | 5.50 € |
11/03 | 11/03 - 10/04 | 9 | 10.00 € | 90.00 € |