Charge aggregation in the Platform

Introduction

This article explains how the Platform aggregates Microsoft's approximately 25 charge types into six simplified charge categories. It details the mapping logic for license-based, one-time, and usage-based subscriptions, and provides a practical example of how multiple Microsoft charge lines are consolidated into cleaner invoice entries within the Platform.

In this article:

• License-based subscriptions
• One-time subscriptions
• Usage-based subscriptions
• Other charge types
• Example of charge aggregation

The Platform uses six primary charge types to organize subscription billing:

• Purchase Fee
• Cycle Fee
• Usage Fee
• Correction
• One Time Fee
• Item Fee

In comparison, Microsoft systems use approximately 25 different charge types. The Platform parses values from Microsoft and aggregates data into these simplified charge types using specific mapping logic.

License-based subscriptions

For license-based subscriptions, Microsoft charge types are mapped to Platform charge types as follows:

Purchase Fee includes:

• Purchase Fee
• Prorate Fee when purchase

Cycle Fee includes:

• Cycle Fee
• Prorate Fee when renew

Correction includes:

• Cycle instance prorate
• Other charge types not mentioned above

Item Fee includes:

• Cycle Fee
• Fee for License-Based subscriptions that are not Prepay

One-time subscriptions

For one-time subscriptions, the mapping is:

One Time Fee includes:

• Purchase

Correction includes:

• Other charge types not mentioned above

Usage-based subscriptions

For usage-based subscriptions, the mapping is:

Usage Fee includes:

• Usage based, Microsoft Cloud Solution Provider contract
• Usage based, Onetime

Other charge types

Correction includes:

• Other charge types not mentioned in any of the above sections

Example of charge aggregation

Consider a license-based subscription with a quantity change event.

Scenario details:

• Invoice Date: 01.02.2021
• Billing Period: 01.01.2021 - 31.01.2021
• Quantity Change Date: 05.01.2021

The invoice includes a Cycle Fee and a Correction line.

Microsoft's invoice contains four separate lines:

1. Prorate fee when renew - cycle for the new period (01.02.2021 - 28.02.2021): 2791.8
2. 1st Cycle instance prorate - cost with the old quantity for the first five days (01.02.2021 - 05.02.2021): 579.73
3. 2nd Cycle instance prorate - cost with the new quantity for the remaining period (06.02.2021 - 28.02.2021): 2193.56
4. 3rd Cycle instance prorate - correction for the amount already invoiced in the previous invoice with old quantity (01.01.2021 - 31.01.2021): -2705.4

Total Cycle instance prorate: 67.89

AppXite aggregates these lines:

Subscription lines with charge type Correction are aggregated into one correction line in the AppXite platform, despite Microsoft having several separate lines.

AppXite's simplified invoice shows:

• Cycle Fee: 2791.8
• Correction: 67.89

Summary

The Platform simplifies Microsoft's complex billing structure by aggregating approximately 25 charge types into six streamlined categories. This aggregation provides clearer invoicing while maintaining accuracy, as demonstrated by the license-based subscription example where multiple Microsoft prorate lines are consolidated into a single correction entry alongside the cycle fee.

Related content

• Complete guide to charge types
• Understanding your Invoice