Learn More About Microsoft’s New Commerce Experience

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Partners will need to have their customers confirm acceptance of the Microsoft Customer Agreement by January 31st, 2020. If these agreements are not signed, no new subscriptions can be added or license counts changed in Partner Center.

Here are the 3 methods of confirming the Microsoft Customer Agreement:

  • Attestation through Partner Center
  • Attestation through APIs like Work 365
  • Sending the agreement link to accept the terms of the agreement through the Microsoft 365 Admin Center

The Microsoft Customer Agreement is a global purchase agreement across multiple purchase streams.  For Cloud Solution Partners going back to all the end customers and getting this process completed can be tedious. Work 365 self-service portal makes it easy for customers to log in and review an existing agreement and confirm the acceptance. The customer’s acceptance from the Work 365 Self-service portal syncs back the data like Date of Signing, Signer back into Work 365 and into the partner center to continue with the Order provisioning process.

The Customer Agreement is also required to transition customers to the Azure Plan subscriptions on Modern Commerce. Modern Commerce and Azure Plan billing is completely different. Partners earn their margin through the Partner Earned Credits (PEC). PEC in the new commerce experience is earned at the Resource level of an Azure tenant. If partners manage the tenant at the resource group or subscription level, they receive PEC on all resources within those containers. Reader level access to resources do not qualify for PEC.

Once access is granted, Partners should ensure they will earn PEC for that customer’s Azure subscription by tying it back to the Partner’s MPN ID:

Partner Requirements

  • Billing relationship with MSFT
  • Provision the subscription
  • 24/7 operational control of the Azure resources in CSP (Azure Admin access)

On the Microsoft price list, all items will be listed at retail price with a monthly exchange rate for the existing 16 supported currencies:

  • AUD, GBP, CNY, EUR, JPY, NZD, RUB, CHF, BRL, CAD, DKK, INR, KRW, NOK, SEK, TWD. Any currency not listed will be billed in USD.
    • Then any earned PEC is taken off the total invoice amount as a net charge.

For existing Microsoft Azure subscriptions, Partners will continue to receive separate reconciliation files for usage and license based subscriptions. However, moving forward in the new commerce model, any new subscriptions created for the following offers will be consolidated to one recon file:

  • Offers consolidated to one recon file: Microsoft Azure, Azure Plan, Azure reservations, server subscriptions, marketplace offers
  • Partners will have a single recon file per currency

Ready to streamline Azure invoicing? We can help just let us know.


ismail-nalwala-iotapBy Ismail Nalwala (contact me)

I am a Dynamics 365 enthusiast. I enjoy building systems and working with cross-functional teams to solve problems and build processes from lead generation to cash collection. Work 365 is a global developer of the Billing Automation and subscription application for Dynamics. Helping companies to streamline business processes and scale their recurring revenue.

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