Prorated Calculation
Introduction
Prorated calculation consists in determining the total term amount when managing credit risk. It allows you to calculate and verify the order amount required from customers to cover the subscription term. Thanks to this, you can make sure that a customer has sufficient balance or credit eligibility before you complete a purchase. By using prorated calculations, you can reduce unpaid balances and automate credit checking.
In this article, you can read about 32 scenarios of prorated calculation that include:
- Coterminosity
- Quantity change
- Partial upgrade
- Full upgrade
- Upgrade to destination subscription
- Scheduled changes (Custom date)
- Scheduled changes (Renewals)
Prorated Calculation Scenarios
The descriptions below show the prorated calculations for different subscription scenarios. The scenarios 1 to 20 include more advanced and complex prorated calculation scenarios.
Note that the additional scenarios 21 to 32 show simpler new purchase and order change scenarios.
The differences in each scenario are marked in red.
Scenario 1: Coterm Calendar Month
In the scenario below, because of the coterm adjustment, the AppXite platform recalculates the end date which results in a shorter term for the initial cycle and prorated charges for the extended period. It also includes a net adjustment of ($20.16) in prorated fees. This reflects an updated end date that is aligned with the coterm policy. It also shortens the initial term and recalculates the cost.
|
SCENARIO 1 Coterm calendar month |
||
| Before coterm | After coterm | |
| Order creation date | June 21, 2024 | June 21, 2024 |
|
Custom date (scheduled) |
- | - |
| Coterm date | - | July 30, 2024 |
| Subscription start date | June 21, 2024 | June 21, 2024 |
| Subscription end date | July 21, 2024 | July 30, 2024 |
| Charge start date | June 21, 2024 | July 21, 2024 |
| Charge end date | July 21, 2024 | July 30, 2024 |
| Product | Microsoft 365 E3 | Microsoft 365 E3 |
| Term duration | Monthly | Monthly |
| Billing plan | Monthly | Monthly |
|
Unit cost in USD (per billing cycle) |
28.8 | 28.8 |
| Unit cost per month | 28.8 | 28.8 |
| Quantity | 1 | 1 |
| Number of days in order month | 30 | 30 |
|
Subscription duration (number of days) |
31 | 10 |
|
Subscription (amount in USD) |
29.76 | 9.60 |
|
Difference (amount in USD) |
20.16 | |
Scenario 2: Coterm Calendar Month
In this scenario, coterminosity is applied to align the renewal dates for a Microsoft 365 E3 subscription that initially followed an annual billing cycle and then it changed to monthly billing. The end date is aligned to June 30, 2025 so AppXite recalculates the prorated cost which resulting a longer term and a small increase in total subscription cost by $13.45. This change aligns the renewal dates for subscriptions.
|
SCENARIO 2 Coterm calendar month |
||
| Before coterm | After coterm | |
| Order creation date | June 21, 2024 | June 21, 2024 |
|
Custom date (scheduled) |
- | - |
| Coterm date | - | June 30, 2025 |
| Subscription start date | June 21, 2024 | July 21, 2024 |
| Subscription end date | July 21, 2024 | July 30, 2024 |
| Charge start date | June 21, 2024 | July 21, 2024 |
| Charge end date | July 21, 2024 | June 30, 2025 |
| Product | Microsoft 365 E3 | Microsoft 365 E3 |
| Term duration | Annual | Annual |
| Billing plan | Monthly | Monthly |
|
Unit cost in USD (per billing cycle) |
345.6 | 28.8 |
| Unit cost per month | 28.8 | 28.8 |
| Quantity | 1 | 1 |
| Number of days in order month | 30 | 30 |
|
Subscription duration (number of days) |
366 | 375 |
|
Subscription (amount in USD) |
346.55 | 360.00 |
|
Difference (amount in USD) |
13.45 | |
Scenario 3: Coterm Calendar Month
This scenario shows how a Microsoft 365 E3 subscription with an annual billing cycle is adjusted for coterminosity. It results in a shorter term and a reduction in the prorated amount.
The adjustment for coterminosity shortens the subscription term which results in a lower prorated cost of $326.66 (down from $346.55). This change aligns the subscription end date with other aligned subscriptions .
|
SCENARIO 3 Coterm calendar month |
||
| Before coterm | After coterm | |
| Order creation date | June 21, 2024 | - |
|
Custom date (scheduled) |
- | - |
| Coterm date | - | May 31, 2025 |
| Subscription start date | June 21, 2024 | June 21, 2024 |
| Subscription end date | June 21, 2025 | May 31, 2025 |
| Charge start date | June 21, 2024 | June 21, 2024 |
| Charge end date | June 21, 2025 | May 31, 2025 |
| Product | Microsoft 365 E3 | Microsoft 365 E3 |
| Term duration | Annual | Annual |
| Billing plan | Annual | Annual |
|
Unit cost in USD (per billing cycle) |
345.6 | 345.6 |
| Unit cost per month | 28.8 | 28.8 |
| Quantity | 1 | 1 |
| Number of days in order month | 30 | 31 |
|
Subscription duration (number of days) |
366 | 345 |
|
Subscription (amount in USD) |
346.55 | 326.66 |
|
Difference (amount in USD) |
19.88 | |
Scenario 4: Standard Purchase With Annual Subscription
In this scenario, a new standard purchase is made for a Microsoft 365 E3 subscription on a monthly billing cycle. A purchase fee is applied based on the monthly rate and the ordered quantity.
The total amount for the standard purchase (including the monthly rate for the subscription and any associated purchase fee) is $148.80. This calculation shows you that the correct amount is charged for the purchase period from June 25 to July 25.
|
SCENARIO 4 Purchase fee |
|
| Order creation date | June 25, 2024 |
|
Custom date (scheduled) |
- |
| Coterm date | - |
| Subscription start date | June 25, 2024 |
| Subscription end date | July 25, 2024 |
| Charge start date | June 25, 2024 |
| Charge end date | July 25, 2024 |
| Product | Microsoft 365 E3 |
| Term duration | Monthly |
| Billing plan | Monthly |
|
Unit cost in USD (per billing cycle) |
28.8 |
| Unit cost per month | 28.8 |
| Quantity | 5 |
| Number of days in order month | 30 |
|
Subscription duration (number of days) |
31 |
|
Subscription (amount in USD) |
148.80 |
Scenario 5: Standard Purchase With Annual Subscription
In this scenario, a Microsoft 365 E3 subscription is purchased with an annual term. A monthly prorated calculation is applied along with a purchase fee. The total amount for this purchase is $345.60 which reflects the prorated calculation for an annual term with a monthly rate basis and a purchase fee. Thanks to this calculation you can be sure that the billing for the entire subscription period from June 18 to June 17 is correct.
|
SCENARIO 5 Purchase fee |
|
| Order creation date | June 18, 2024 |
|
Custom date (scheduled) |
- |
| Coterm date | - |
| Subscription start date | June 18, 2024 |
| Subscription end date | June 17, 2025 |
| Charge start date | June 18, 2024 |
| Charge end date | July 17, 2024 |
| Product | Microsoft 365 E3 |
| Term duration | Annual |
| Billing plan | Monthly |
|
Unit cost in USD (per billing cycle) |
28.8 |
| Unit cost per month | 28.8 |
| Quantity | 1 |
| Number of days in order month | 30 |
|
Subscription duration (number of days) |
365 |
|
Subscription (amount in USD) |
345.60 |
Scenario 6: Standard Purchase With Annual Subscription
In this scenario, a customer purchased Microsoft 365 E3 subscription with a fixed annual rate. No monthly prorated changes are applied.
The total amount for the subscription over the annual term is $345.60 (based on the annual rate without additional prorated fees or monthly adjustments). This one-time annual payment covers the entire subscription period from June 18 to June 17.
|
SCENARIO 6 Purchase fee |
|
| Order creation date | June 18, 2024 |
|
Custom date (scheduled) |
- |
| Coterm date | - |
| Subscription start date | June 18, 2024 |
| Subscription end date | June 17, 2025 |
| Charge start date | June 18, 2024 |
| Charge end date | June 17, 2025 |
| Product | Microsoft 365 E3 |
| Term duration | Annual |
| Billing plan | Annual |
|
Unit cost in USD (per billing cycle) |
345.6 |
| Unit cost per month | 28.8 |
| Quantity | 1 |
| Number of days in order month | 30 |
|
Subscription duration (number of days) |
365 |
|
Subscription (amount in USD) |
345.60 |
Scenario 7: Quantity Increase
This scenario involves a Microsoft 365 E3 subscription plan that is initially on a monthly billing cycle. In the middle of the term, the quantity was increased from 1 unit to 5 units which resulted in adjusted cost.
By increasing the quantity to 5 units in the middle of the monthly term, the platform recalculates the cost to reflect those additional units. The total subscription cost for this term is now $110.40 which is up by $89.03 from the original amount.
|
SCENARIO 7 Quantity increase |
||
| Order creation date | - | June 25, 2024 |
|
Custom date (scheduled) |
- | - |
| Coterm date | - | - |
| Subscription start date | June 18, 2024 | June 18, 2024 |
| Subscription end date | July 17, 2024 | July 17, 2024 |
| Charge start date | June 25, 2024 | June 25, 2024 |
| Charge end date | July 17, 2024 | July 17, 2024 |
| Product | Microsoft 365 E3 | Microsoft 365 E3 |
| Term duration | Monthly | Monthly |
| Billing plan | Monthly | Monthly |
|
Unit cost in USD (per billing cycle) |
28.8 | 28.8 |
| Unit cost per month | 28.8 | 28.8 |
| Quantity | 1 | 5 |
| Number of days in order month | 31 | 30 |
|
Subscription duration (number of days) |
23 | 23 |
|
Subscription (amount in USD) |
21.37 | 110.40 |
|
Difference (amount in USD) |
89.03 | |
Scenario 8: Quantity Increase
In this scenario, a customer purchased a single Microsoft 365 E3 subscription with an annual billing cycle. Then, the quantity was increased from 1 to 5 units which led to a prorated adjustment in the total amount. With the quantity increased to 5 units in the middle of the term, the AppXite platform recalculates the total cost based on the new quantity and prorates the amount. The additional charge for the increase in quantity is $1,355.89 which makes the total subscription cost equal to $1,694.86. This change makes the subscription cost align with the usage for the remainder of the annual term.
|
SCENARIO 8 Quantity increase |
||
| Order creation date | - | June 25, 2024 |
|
Custom date (scheduled) |
- | - |
| Coterm date | - | - |
| Subscription start date | June 18, 2024 | June 18, 2024 |
| Subscription end date | June 17, 2025 | June 17, 2025 |
| Charge start date | June 25, 2024 | June 25, 2024 |
| Charge end date | June 17, 2025 | June 17, 2025 |
| Product | Microsoft 365 E3 | Microsoft 365 E3 |
| Term duration | Annual | Annual |
| Billing plan | Monthly | Monthly |
|
Unit cost in USD (per billing cycle) |
345.6 | 345.6 |
| Unit cost per month | 28.8 | 28.8 |
| Quantity | 1 | 5 |
| Number of days in order month | 31 | 30 |
|
Subscription duration (number of days) |
358 | 358 |
|
Subscription (amount in USD) |
338.97 | 1,694.86 |
|
Difference (amount in USD) |
1,355.89 | |
Scenario 9: Quantity Increase
In this scenario, a customer purchased a Microsoft 365 E3 subscription at first with an annual billing cycle for 1 unit. Later, that quantity was increased to 5 which resulted in a prorated adjustment in the total amount.
As the quantity was increased to 5 in the middle of the annual term, the platform recalculates the subscription cost to reflect the additional units. The total cost is now $1,694.86 (which is up by $1,355.89 from the original amount)
|
SCENARIO 9 Quantity increase |
||
| Order creation date | - | June 25, 2024 |
|
Custom date (scheduled) |
- | - |
| Coterm date | - | - |
| Subscription start date | June 18, 2024 | June 18, 2024 |
| Subscription end date | June 17, 2025 | June 17, 2025 |
| Charge start date | June 25, 2024 | June 25, 2024 |
| Charge end date | June 17, 2025 | June 17, 2025 |
| Product | Microsoft 365 E3 | Microsoft 365 E3 |
| Term duration | Annual | Annual |
| Billing plan | Annual | Annual |
|
Unit cost in USD (per billing cycle) |
345.6 | 345.6 |
| Unit cost per month | 28.8 | 28.8 |
| Quantity | 1 | 5 |
| Number of days in order month | 31 | 30 |
|
Subscription duration (number of days) |
358 | 358 |
|
Subscription (amount in USD) |
338.97 | 1,694.86 |
|
Difference (amount in USD) |
1,355.89 | |
Scenario 10: Scheduled Changes (Renewal)
In this scenario, a Microsoft 365 E3 subscription is created with scheduled changes that happen when there is a renewal. At the beginning, the subscription covers 5 units on a monthly billing cycle. This is later adjusted to 10 units on an annual billing cycle at the time of renewal. With the scheduled changes set to take effect on renewal, the AppXite platform updates the subscription to 10 units and switches from monthly to annual billing. This change results in a new annual cost of $3,390.97. The platform recalculates the credit limit and value at risk based on the new configuration so you know that the customer can cover the increased subscription amount after renewal.
|
SCENARIO 10 Scheduled changes (Renewal) |
||
| Order creation date | - | July 17, 2024 |
|
Custom date (scheduled) |
- | - |
| Coterm date | - | - |
| Subscription start date | June 18, 2024 | July 18, 2024 |
| Subscription end date | August 17, 2024 | July 17, 2025 |
| Charge start date | July 18, 2024 | July 18, 2024 |
| Charge end date | August 17, 2024 | August 17, 2024 |
| Product | Microsoft 365 E3 | Microsoft 365 E3 |
| Term duration | Monthly | Annual |
| Billing plan | Monthly | Monthly |
|
Unit cost in USD (per billing cycle) |
28.8 | 28.8 |
| Unit cost per month | 28.8 | 28.8 |
| Quantity | 5 | 10 |
| Number of days in order month | 31 | 31 |
|
Subscription duration (number of days) |
31 | 365 |
|
Subscription (amount in USD) |
338.97 | 1,694.86 |
|
Difference (amount in USD) |
1,355.89 | |
Scenario 11: Scheduled Changes (Renewal)
This scenario shows how a Microsoft 365 E3 subscription that is initially configured for 5 units on a monthly billing cycle is later scheduled for a quantity increase to 10 units (at the time of renewal). With the scheduled adjustments that happen on renewal, the platform updates the subscription to 10 units while it maintains the monthly billing frequency. This adjustment doubles the monthly cost (from $148.80 to $297.60).
|
SCENARIO 11 Scheduled changes (Renewal) |
||
| Order creation date | - | July 17, 2024 |
|
Custom date (scheduled) |
- | - |
| Coterm date | - | - |
| Subscription start date | July 18, 2024 | July 18, 2024 |
| Subscription end date | August 17, 2024 | August 17, 2024 |
| Charge start date | July 18, 2024 | July 18, 2024 |
| Charge end date | August 17, 2024 | August 17, 2024 |
| Product | Microsoft 365 E3 | Microsoft 365 E3 |
| Term duration | Monthly | Monthly |
| Billing plan | Monthly | Monthly |
|
Unit cost in USD (per billing cycle) |
28.8 | 28.8 |
| Unit cost per month | 28.8 | 28.8 |
| Quantity | 5 | 10 |
| Number of days in order month | 30 | 30 |
|
Subscription duration (number of days) |
31 | 31 |
|
Subscription (amount in USD) |
148.80 | 297.60 |
|
Difference (amount in USD) |
148.80 | |
Scenario 12: Scheduled Changes (Renewal)
In this scenario, a Microsoft 365 E3 subscription is set up with annual billing for 5 units. Then the subscription is scheduled for a change to monthly billing and an increase to 10 units at renewal.
The scheduled adjustments result in a shift from annual billing for 5 units to monthly billing for 10 units. The overall monthly cost increases due to the higher quantity but the total upfront cost decreases as billing changes to a month-by-month basis. This scenario shows the flexibility that you can achieve by scheduled changes for subscription adjustments based on your customer needs.
|
SCENARIO 12 Scheduled changes (Renewal) |
||
| Order creation date | June 18, 2024 | June 18, 2024 |
|
Custom date (scheduled) |
- | - |
| Coterm date | - | - |
| Subscription start date | June 18, 2024 | June 18, 2024 |
| Subscription end date | June 17, 2025 | June 17, 2025 |
| Charge start date | June 18, 2024 | June 18, 2024 |
| Charge end date | June 17, 2025 | July 17, 2025 |
| Product | Microsoft 365 E3 | Microsoft 365 E3 |
| Term duration | Annual | Monthly |
| Billing plan | Annual | Monthly |
|
Unit cost in USD (per billing cycle) |
345.6 | 28.8 |
| Unit cost per month | 28.8 | 28.8 |
| Quantity | 5 | 10 |
| Number of days in order month | 30 | 30 |
|
Subscription duration (number of days) |
365 | 30 |
|
Subscription (amount in USD) |
1,728.00 | 288.00 |
|
Difference (amount in USD) |
1,355.89 | |
Scenario 13: Scheduled Changes (Custom Date)
In the scenario here, we have a Microsoft 365 E3 subscription that is updated with scheduled changes configured to take effect on a custom date. The subscription changes from 2 units on a monthly billing cycle to 5 units on an annual billing cycle which leads to recalculation of costs. With the scheduled changes taking effect on a custom date (June 30, 2024), the subscription changes to 5 units on an annual billing cycle. The total cost is recalculated to $1,676.90 for the rest of the term. This reflects the increase in quantity and the change to annual billing.
|
SCENARIO 13 Scheduled changes (Custom date) |
||
| Order creation date | - | - |
|
Custom date (scheduled) |
- | June 30, 2024 |
| Coterm date | - | - |
| Subscription start date | June 25, 2024 | June 25, 2024 |
| Subscription end date | July 25, 2024 | June 25, 2025 |
| Charge start date | June 30, 2024 | June 30, 2024 |
| Charge end date | July 25, 2024 | June 30, 2025 |
| Product | Microsoft 365 E3 | Microsoft 365 E3 |
| Term duration | Monthly | Annual |
| Billing plan | Monthly | Monthly |
|
Unit cost in USD (per billing cycle) |
28.8 | 28.8 |
| Unit cost per month | 28.8 | 28.8 |
| Quantity | 2 | 5 |
| Number of days in order month | 31 | 31 |
|
Subscription duration (number of days) |
26 | 361 |
|
Subscription (amount in USD) |
48.31 | 1,676.90 |
|
Difference (amount in USD) |
1,628.59 | |
Scenario 14: Scheduled Changes (Custom Date)
In this scenario, a Microsoft 365 E3 subscription is scheduled for changes on a defined custom date. The subscription changes from 2 units to 5 units on an annual billing cycle, leading to a recalculated total cost. The scheduled change takes effect on June 30, 2024, increasing the quantity from 2 units to 5 units for the remaining term. The subscription cost rises from $670.76 to $1,676.90.
|
SCENARIO 14 Scheduled changes (Custom date) |
||
| Order creation date | - | - |
|
Custom date (scheduled) |
- | June 30, 2024 |
| Coterm date | - | - |
| Subscription start date | June 25, 2024 | June 25, 2024 |
| Subscription end date | July 25, 2024 | June 25, 2025 |
| Charge start date | June 30, 2024 | June 30, 2024 |
| Charge end date | July 25, 2024 | June 30, 2025 |
| Product | Microsoft 365 E3 | Microsoft 365 E3 |
| Term duration | Monthly | Annual |
| Billing plan | Monthly | Monthly |
|
Unit cost in USD (per billing cycle) |
28.8 | 28.8 |
| Unit cost per month | 28.8 | 28.8 |
| Quantity | 2 | 5 |
| Number of days in order month | 31 | 31 |
|
Subscription duration (number of days) |
26 | 361 |
|
Subscription (amount in USD) |
48.31 | 1,676.90 |
|
Difference (amount in USD) |
1,628.59 | |
Scenario 15: Scheduled Changes (Custom Date)
This scenario shows how a Microsoft 365 E3 subscription that is configured for 5 units on an annual billing cycle is later scheduled to increase to 10 units on a custom date. This changes leads to a recalculation of the total cost for the remaining period. On the defined custom date (June 30, 2024), the subscription changes from 5 units to 10 units (note that the billing frequency remains annual). This adjustment results in a new total cost of $3,279.48 which reflects the increased quantity. The difference in cost is $1,639.74.
|
SCENARIO 15 Scheduled changes (Custom date) |
||
| Order creation date | - | - |
|
Custom date (scheduled) |
- | June 30, 2024 |
| Coterm date | - | - |
| Subscription start date | June 18, 2024 | June 18, 2024 |
| Subscription end date | June 17, 2025 | June 17, 2025 |
| Charge start date | June 30, 2024 | June 30, 2024 |
| Charge end date | June 17, 2025 | June 17, 2025 |
| Product | Microsoft 365 E3 | Microsoft 365 E3 |
| Term duration | Annual | Annual |
| Billing plan | Annual | Annual |
|
Unit cost in USD (per billing cycle) |
345.6 | 345.6 |
| Unit cost per month | 28.8 | 28.8 |
| Quantity | 5 | 10 |
| Number of days in order month | 31 | 31 |
|
Subscription duration (number of days) |
353 | 353 |
|
Subscription (amount in USD) |
1,639.74 | 3,279.48 |
|
Difference (amount in USD) |
1,639.74 | |
Scenario 16: Upgrade Not Allowed (Immediate or Custom Date with Reducing Billing Frequency)
This scenario is not possible. It shows an attempt to upgrade a Microsoft 365 subscription immediately or on a custom date together with a change of the billing frequency. However, the platform enforces restrictions that prevent changing the term or billing frequency for the immediate or custom date upgrade options. Note that the fact that it is not possible to reduce the term or frequency of subscriptions for immediate or custom date upgrades results from the vendor's policy limitations.
|
SCENARIO 16 (NOT ALLOWED) Immediate / Custom Date with Reducing Billing Frequency |
||
| Order creation date | June 18, 2024 | June 18, 2024 |
|
Custom date (scheduled) |
June 30, 2024 | June 30, 2024 |
| Coterm date | - | - |
| Subscription start date | June 18, 2024 | June 18, 2024 |
| Subscription end date | July 25, 2025 | July 25, 2025 |
| Charge start date | - | - |
| Charge end date | - | - |
| Product | Microsoft 365 E3 | Microsoft 365 E3 |
| Term duration | Annual | Monthly |
| Billing plan | Annual | Monthly |
|
Unit cost in USD (per billing cycle) |
28.8 | 36.6 |
| Unit cost per month | - | - |
| Quantity | 5 | 5 |
| Number of days in order month | - | - |
|
Subscription duration (number of days) |
- | |
|
Subscription (amount in USD) |
- | - |
|
Remarks |
Upgrade not allowed | |
Scenario 17: Full Upgrade Immediately (Custom Date)
In this scenario, a customer upgrades their Microsoft 365 subscription from E3 to E5 during their active term. The subscription stays on a monthly billing cycle while the change takes immediate effect which leads to a prorated cost adjustment. After upgrading from Microsoft 365 E3 to E5, the platform recalculates the prorated cost for the remaining period. The total cost increases by $11.57 (due to the higher monthly rate for E5). This calculation shows that the billing reflects the upgraded subscription tier for the remainder of the current term.
|
SCENARIO 17 Full upgrade immediately (Custom Date) |
||
| Order creation date | - | - |
|
Custom date (scheduled) |
- | - |
| Coterm date | - | - |
| Subscription start date | June 18, 2024 | June 25, 2024 |
| Subscription end date | July 17, 2024 | July 17, 2024 |
| Charge start date | June 25, 2024 | June 25, 2024 |
| Charge end date | July 17, 2024 | July 17, 2024 |
| Product | Microsoft 365 E3 | Microsoft 365 E5 |
| Term duration | Monthly | Monthly |
| Billing plan | Monthly | Monthly |
|
Unit cost in USD (per billing cycle) |
28.8 | 439.2 |
| Unit cost per month | 28.8 | 36.6 |
| Quantity | 2 | 2 |
| Number of days in order month | 31 | 31 |
|
Subscription duration (number of days) |
23 | 23 |
|
Subscription (amount in USD) |
42.74 | 54.31 |
|
Difference (amount in USD) |
11.57 | |
Scenario 18: Full Upgrade Immediately (Custom Date)
In this scenario, a customer upgrades their subscription from Microsoft 365 E3 to E5 and the billing cycle changes from monthly to annual. The upgrade is applied immediately which leads to a recalculation of costs.
The AppXite platform recalculates the subscription cost after upgrading from E3 to E5 and switching to annual billing. The total cost increases by $403.06 which reflects the higher subscription plan and the change to an annual billing cycle.
|
SCENARIO 18 Full upgrade immediately (Custom Date) |
||
| Order creation date | - | - |
|
Custom date (scheduled) |
- | - |
| Coterm date | - | - |
| Subscription start date | June 18, 2024 | June 25, 2024 |
| Subscription end date | July 17, 2024 | July 17, 2024 |
| Charge start date | June 25, 2024 | June 25, 2024 |
| Charge end date | July 17, 2024 | July 17, 2024 |
| Product | Microsoft 365 E3 | Microsoft 365 E5 |
| Term duration | Monthly | Annual |
| Billing plan | Monthly | Monthly |
|
Unit cost in USD (per billing cycle) |
28.8 | 439.2 |
| Unit cost per month | 28.8 | 36.6 |
| Quantity | 1 | 1 |
| Number of days in order month | 31 | 31 |
|
Subscription duration (number of days) |
23 | 23 |
|
Subscription (amount in USD) |
27.87 | 430.94 |
|
Difference (amount in USD) |
403.06 | |
Scenario 19: Full Upgrade Immediately (Custom Date)
This scenario shows how a customer upgrades their Microsoft 365 subscription from E3 to E5 and changes their billing cycle from monthly to annual. The upgrade comes into effect immediately and the costs are recalculated. The total cost increases to $876.00 which reflects upgraded subscription and extended billing cycle.
|
SCENARIO 19 Full upgrade immediately (Custom Date) |
||
| Order creation date | - | - |
|
Custom date (scheduled) |
- | - |
| Coterm date | - | - |
| Subscription start date | June 18, 2024 | June 25, 2024 |
| Subscription end date | July 17, 2024 | June 24, 2025 |
| Charge start date | June 18, 2024 | June 25, 2024 |
| Charge end date | July 17, 2024 | June 24, 2025 |
| Product | Microsoft 365 E3 | Microsoft 365 E5 |
| Term duration | Monthly | Annual |
| Billing plan | Monthly | Annual |
|
Unit cost in USD (per billing cycle) |
28.8 | 439.2 |
| Unit cost per month | 28.8 | 36.6 |
| Quantity | 2 | 2 |
| Number of days in order month | 31 | 31 |
|
Subscription duration (number of days) |
30 | 365 |
|
Subscription (amount in USD) |
55.74 | 876.00 |
|
Difference (amount in USD) |
820.26 | |
Scenario 20: Full Upgrade Immediately (Custom Date)
A customer in this scenario upgrades their Microsoft 365 E3 subscription to Microsoft 365 E5 with changes to both the quantity and the billing cycle. The upgrade and adjustments happen immediately and the costs are recalculated. The customer goes from a Microsoft 365 E3 subscription to E5 with an annual billing cycle and an increase to 10 units at first. Then, the quantity is further increased to 15 units. The total cost rises from $83.61 (E3) to $6,251.52 (E5 with 15 units) with a difference of $2,000.23 because of the additional 5 units added later on.
|
SCENARIO 20 Full upgrade immediately (Custom Date) |
|||
| Order creation date | - | - | - |
|
Custom date (scheduled) |
June 30, 2024 | June 30, 2024 | June 30, 2024 |
| Coterm date | - | - | - |
| Subscription start date | June 18, 2024 | June 18, 2024 | June 18, 2024 |
| Subscription end date | July 17, 2024 | June 17, 2025 | June 17, 2025 |
| Charge start date | June 30, 2024 | June 30, 2024 | June 30, 2024 |
| Charge end date | July 17, 2024 | June 17, 2025 | June 17, 2025 |
| Product | Microsoft 365 E3 | Microsoft 365 E5 | Microsoft 365 E5 |
| Term duration | Monthly | Annual | Annual |
| Billing plan | Monthly | Annual | Annual |
|
Unit cost in USD (per billing cycle) |
28.8 | 439.2 | 439.2 |
| Unit cost per month | 28.8 | 36.6 | 36.6 |
| Quantity | 5 | 10 | 15 |
| Number of days in order month | 31 | 31 | 31 |
|
Subscription duration (number of days) |
18 | 353 | 353 |
|
Subscription (amount in USD) |
83.61 | 4,167.68 | 6,251.52 |
|
Difference (amount in USD) |
2,000.23 | ||
Scenario 21: New Purchase
This simple scenario shows a new subscription purchase for Microsoft 365 E3 where the subscription follows a monthly billing cycle. A customer purchases a Microsoft 365 E3 subscription for one month. The total cost is $34.56 for the 30-day billing cycle which reflects the monthly plan's unit cost..
|
SCENARIO 21 New Purchase |
||
| Order creation date | June 18, 2024 | |
|
Custom date (scheduled) |
- | |
| Coterm date | - | |
| Subscription start date | June 18, 2024 | |
| Subscription end date | July 17, 2024 | |
| Charge start date | June 18, 2024 | |
| Charge end date | July 17, 2024 | |
| Product | Microsoft 365 E3 | |
| Term duration | Monthly | |
| Billing plan | Monthly | |
|
Unit cost in USD (per billing cycle) |
34.56 | |
| Unit cost per month | 34.56 | |
| Quantity | 1 | |
| Number of days in order month | 30 | |
|
Subscription duration (number of days) |
30 | |
|
Subscription (amount in USD) |
34.56 | |
Scenario 22: New Purchase
This straightforward scenario shows a new purchase for a Microsoft 365 E3 subscription where the customer commits to an annual (1-year-long) subscription with costs calculated monthly. The calculation provides accurate billing for a fixed annual commitment. The total cost is $345.60 for 1 unit annually with a monthly equivalent cost of $28.8.
|
SCENARIO 22 New Purchase |
||
| Order creation date | June 18, 2024 | |
|
Custom date (scheduled) |
- | |
| Coterm date | - | |
| Subscription start date | June 18, 2024 | |
| Subscription end date | July 17, 2024 | |
| Charge start date | June 18, 2024 | |
| Charge end date | July 17, 2024 | |
| Product | Microsoft 365 E3 | |
| Term duration | Annual | |
| Billing plan | Monthly | |
|
Unit cost in USD (per billing cycle) |
28.80 | |
| Unit cost per month | 28.80 | |
| Quantity | 1 | |
| Number of days in order month | 30 | |
|
Subscription duration (number of days) |
365 | |
|
Subscription (amount in USD) |
345.60 | |
Scenario 23: New Purchase
This straightforward scenario shows accurate calculation for an annual commitment with a fixed cost. The scenario involves a new purchase for a Microsoft 365 E3 subscription with an annual billing cycle. The customer purchased a Microsoft 365 E3 subscription for a 1-year term. The total cost is $345.60 reflects the annual billing plan for 1 unit.
|
SCENARIO 23 New purchase |
||
| Order creation date | June 18, 2024 | |
|
Custom date (scheduled) |
- | |
| Coterm date | - | |
| Subscription start date | June 18, 2024 | |
| Subscription end date | July 17, 2024 | |
| Charge start date | June 18, 2024 | |
| Charge end date | July 17, 2024 | |
| Product | Microsoft 365 E3 | |
| Term duration | Annual | |
| Billing plan | Annual | |
|
Unit cost in USD (per billing cycle) |
345.6 | |
| Unit cost per month | 28.8 | |
| Quantity | 1 | |
| Number of days in order month | 30 | |
|
Subscription duration (number of days) |
365 | |
|
Subscription (amount in USD) |
345.60 | |
Scenario 24: Order Change (Increase in Quantity)
This simple scenario shows accurate billing for the added quantity during the existing subscription period. The customer adds 1 additional unit to their current Microsoft 365 E3 subscription on June 25, 2024. It results in a prorated charge of $26.50 for the remaining 23 days of the billing cycle.
|
SCENARIO 24 Order change (increase in quantity) |
||
| Order creation date | June 18, 2024 | |
|
Custom date (scheduled) |
- | |
| Coterm date | - | |
| Subscription start date | June 18, 2024 | |
| Subscription end date | July 17, 2024 | |
| Charge start date | June 25, 2024 | |
| Charge end date | July 17, 2024 | |
| Product | Microsoft 365 E3 | |
| Term duration | Monthly | |
| Billing plan | Monthly | |
|
Unit cost in USD (per billing cycle) |
34.56 | |
| Unit cost per month | 34.56 | |
| Quantity | 1 | |
| Number of days in order month | 30 | |
|
Subscription duration (number of days) |
23 | |
|
Subscription (amount in USD) |
26.50 | |
Scenario 25: Order Change (Increase in Quantity)
This simple scenario presents proper billing calculation for the additional unit within the existing subscription period. The scenario involves adding additional quantities to an existing Microsoft 365 E3 subscription with an annual billing cycle.
The customer adds 1 additional unit to their Microsoft 365 E3 subscription on June 25, 2024 with a prorated charge of $338.88 for the remaining 358 days of the annual term.
|
SCENARIO 25 Order change (increase in quantity) |
||
| Order creation date | June 18, 2024 | |
|
Custom date (scheduled) |
- | |
| Coterm date | - | |
| Subscription start date | June 18, 2024 | |
| Subscription end date | July 17, 2024 | |
| Charge start date | June 25, 2024 | |
| Charge end date | July 17, 2024 | |
| Product | Microsoft 365 E3 | |
| Term duration | Annual | |
| Billing plan | Monthly | |
|
Unit cost in USD (per billing cycle) |
28.8 | |
| Unit cost per month | 28.8 | |
| Quantity | 1 | |
| Number of days in order month | 30 | |
|
Subscription duration (number of days) |
358 | |
|
Subscription (amount in USD) |
338.88 | |
Scenario 26: Order Change (Increase in Quantity)
This scenario shows the addition of 1 unit to an existing Microsoft 365 E3 subscription with an annual billing cycle. The additional unit is added in the middle the subscription term and is billed prorated for the remaining duration.
The customer adds 1 additional unit to their Microsoft 365 E3 subscription on June 25, 2024. The AppXite platform calculates the prorated charge for the remaining 358 days of the subscription term ($338.97) which is based on the annual unit cost of $345.60. The calculation presents how the new quantity is accurately billed for the remaining subscription duration.
|
SCENARIO 26 Order change (increase in quantity) |
||
| Order creation date | June 18, 2024 | |
|
Custom date (scheduled) |
- | |
| Coterm date | - | |
| Subscription start date | June 18, 2024 | |
| Subscription end date | July 17, 2024 | |
| Charge start date | June 25, 2024 | |
| Charge end date | July 17, 2024 | |
| Product | Microsoft 365 E3 | |
| Term duration | Annual | |
| Billing plan | Annual | |
|
Unit cost in USD (per billing cycle) |
345.6 | |
| Unit cost per month | 28.8 | |
| Quantity | 1 | |
| Number of days in order month | 30 | |
|
Subscription duration (number of days) |
358 | |
|
Subscription (amount in USD) |
338.97 | |
Scenario 27: Order Change (Decrease in Quantity)
This simple scenario involves reducing the quantity of a Microsoft 365 E3 subscription that is on a monthly billing cycle. The quantity change is applied during the billing period. The platform calculates a prorated refund for the unused duration of the removed unit.
The customer reduces the subscription quantity by 1 unit on June 25, 2024 and AppXite calculates a prorated refund of $26.50 for the remaining 23 days of the billing cycle. This way, the customer is only billed for the actual usage of the reduced unit.
|
SCENARIO 27 Order change (decrease in quantity) |
||
| Order creation date | June 18, 2024 | |
|
Custom date (scheduled) |
- | |
| Coterm date | - | |
| Subscription start date | June 18, 2024 | |
| Subscription end date | July 17, 2024 | |
| Charge start date | June 25, 2024 | |
| Charge end date | July 17, 2024 | |
| Product | Microsoft 365 E3 | |
| Term duration | Monthly | |
| Billing plan | Monthly | |
|
Unit cost in USD (per billing cycle) |
34.56 | |
| Unit cost per month | 34.56 | |
| Quantity | -1 | |
| Number of days in order month | 30 | |
|
Subscription duration (number of days) |
23 | |
|
Subscription (amount in USD) |
(26.50) | |
Scenario 28: Order Change (Decrease in Quantity)
This straightforward scenario presents a decrease in quantity of a Microsoft 365 E3 subscription with an annual billing cycle. The adjustment is made during the the subscription term, so the AppXite platform calculates a prorated refund for the unused portion of the removed unit.
The customer reduces the subscription by 1 unit on June 25, 2024. The system calculates a prorated refund of $338.88 for the unused part of the annual subscription (358 days). The calculation shows that the customer is correctly refunded for the unused service.
|
SCENARIO 28 Order change (decrease in quantity) |
||
| Order creation date | June 18, 2024 | |
|
Custom date (scheduled) |
- | |
| Coterm date | - | |
| Subscription start date | June 18, 2024 | |
| Subscription end date | July 17, 2024 | |
| Charge start date | June 25, 2024 | |
| Charge end date | July 17, 2024 | |
| Product | Microsoft 365 E3 | |
| Term duration | Annual | |
| Billing plan | Monthly | |
|
Unit cost in USD (per billing cycle) |
28.8 | |
| Unit cost per month | 28.8 | |
| Quantity | -1 | |
| Number of days in order month | 30 | |
|
Subscription duration (number of days) |
358 | |
|
Subscription (amount in USD) |
(338.88) | |
Scenario 29: Order Change (Decrease in Quantity)
This scenario describes a quantity reduction for an existing Microsoft 365 E3 subscription with an annual billing cycle. The decrease happens during subscription term and results in a refund for the unused part of the removed unit.
The customer decreases their subscription by 1 unit on June 25, 2024. The platform recalculates a prorated refund of $338.97 for the unused part of the annual subscription covering this way the remaining 358 days of the subscription.
|
SCENARIO 29 Order change (decrease in quantity) |
||
| Order creation date | June 18, 2024 | |
|
Custom date (scheduled) |
- | |
| Coterm date | - | |
| Subscription start date | June 18, 2024 | |
| Subscription end date | July 17, 2024 | |
| Charge start date | June 25, 2024 | |
| Charge end date | July 17, 2024 | |
| Product | Microsoft 365 E3 | |
| Term duration | Annual | |
| Billing plan | Annual | |
|
Unit cost in USD (per billing cycle) |
345.6 | |
| Unit cost per month | 28.8 | |
| Quantity | -1 | |
| Number of days in order month | 30 | |
|
Subscription duration (number of days) |
358 | |
|
Subscription (amount in USD) |
(338.97) | |
Scenario 30: Order Change (Cancellation)
This scenario shows the cancellation of a Microsoft 365 E3 subscription on a monthly billing cycle. The cancellation happens in the middle of the subscription period. AppXite then calculates a prorated refund for the unused portion of the service.
The customer cancels their Microsoft 365 E3 subscription on June 25, 2024. The platform calculates a prorated refund of $25.50 for the unused 23 days. This way that the customer is properly refunded for the part of the service they did not use.
|
SCENARIO 30 Order change (cancellation) |
||
| Order creation date | June 18, 2024 | |
|
Custom date (scheduled) |
- | |
| Coterm date | - | |
| Subscription start date | June 18, 2024 | |
| Subscription end date | July 17, 2024 | |
| Charge start date | June 25, 2024 | |
| Charge end date | July 17, 2024 | |
| Product | Microsoft 365 E3 | |
| Term duration | Monthly | |
| Billing plan | Monthly | |
|
Unit cost in USD (per billing cycle) |
34.56 | |
| Unit cost per month | 34.56 | |
| Quantity | -1 | |
| Number of days in order month | 30 | |
|
Subscription duration (number of days) |
23 | |
|
Subscription (amount in USD) |
(26.50) | |
Scenario 31: Order Change (Cancellation)
The straightforward scenario here shows the cancellation of a Microsoft 365 E3 subscription with an annual billing cycle. The cancellation happens during the subscription period and it leads to a prorated refund for the unused part of the subscription.
The customer cancels their Microsoft 365 E3 subscription on June 25, 2024. The AppXite platform calculates a prorated refund of $338.88 for the unused subscription (358 days). This calculation shows how the customer is fairly refunded for the remaining subscription period.
|
SCENARIO 31 Order change (cancellation) |
||
| Order creation date | June 18, 2024 | |
|
Custom date (scheduled) |
- | |
| Coterm date | - | |
| Subscription start date | June 18, 2024 | |
| Subscription end date | July 17, 2024 | |
| Charge start date | June 25, 2024 | |
| Charge end date | July 17, 2024 | |
| Product | Microsoft 365 E3 | |
| Term duration | Annual | |
| Billing plan | Monthly | |
|
Unit cost in USD (per billing cycle) |
28.8 | |
| Unit cost per month | 28.8 | |
| Quantity | -1 | |
| Number of days in order month | 30 | |
|
Subscription duration (number of days) |
358 | |
|
Subscription (amount in USD) |
(338.88) | |
Scenario 32: Order Change (Cancellation)
This scenario involves the cancellation of a Microsoft 365 E3 subscription with an annual billing cycle. The cancellation takes place in the middle of the subscription period. This results in a refund for the customer for the unused portion of the subscription.
The customer cancels their Microsoft 365 E3 subscription on June 25, 2024. The platform calculates a refund of $338.88 for the unused part of the subscription which covers 358 days. That way the customer gets a fair refund for the remaining subscription period they did not used.
|
SCENARIO 32 Order change (cancellation) |
||
| Order creation date | June 18, 2024 | |
|
Custom date (scheduled) |
- | |
| Coterm date | - | |
| Subscription start date | June 18, 2024 | |
| Subscription end date | July 17, 2024 | |
| Charge start date | June 25, 2024 | |
| Charge end date | July 17, 2024 | |
| Product | Microsoft 365 E3 | |
| Term duration | Annual | |
| Billing plan | Annual | |
|
Unit cost in USD (per billing cycle) |
345.6 | |
| Unit cost per month | 28.8 | |
| Quantity | -1 | |
| Number of days in order month | 30 | |
|
Subscription duration (number of days) |
358 | |
|
Subscription (amount in USD) |
(338.97) | |
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