Azure Reserved Instances are charged once or monthly on purchase date. The pricing information we are collecting from Microsoft from the prices importer process is the cost price (i.e what Microsoft charges you as a CSP). For billing your resellers and your customers, you will need to define the margin you want for your RIs by adding in your price lists the "Microsoft Azure Reserved Instances" product. The system will automatically apply the margin you defined in the customer’s price list every time he purchases a RI.

Configuring Azure Reservations Pricing for Resellers

If you are an indirect CSP and you want to set discounts for the Reserved Instances to your resellers,  you must add the Reserved Instance product in resellers price lists. The process is the following

1. Locate your reseller price list in Billing > Price Lists
   
   
2. Go to Products tabs and select Quick Add > Products. In the pop-up form search for the Microsoft Azure Reserved Instances product
   
   
   
3. Select the action Same pricing rule for defining the discount you give for Azure product in the selected price list.
   
   
4. When you add the Reserved Instance product in one of your reseller's price list, you should select as pricing rule the "Percent Markup - Cost Price" or the "Percent Margin - Cost Price". The markup or margin percentage it must be set to the field next to the pricing rule.
   
   

Configuring Reserved Instances Pricing for Direct Customers

CSP Direct Partners can opt to sell to direct customers without price lists. For this reason, you must follow a simple procedure in order to price the Reserved Instances according to the margin you desire.

1. Add the Reserved Instance product in the price list you are using as the default price list for the Azure product.
2. There, the Reserved Instance product must be assigned with a markup/margin pricing rule, having the appropriate percentage that will augment the price until it reaches ERP price level. 
3. Now, locate the Reserved Instance product and mark the price list as 'default'.
   
   
   
4. That's it! All customers will be priced according to the margin you have designated!