Invoice Example – Trial

Introduction

This article explains how trial Subscriptions are processed in billing files when converted to paid versions. It covers the billing flow from trial activation through conversion, including how charges appear in both Microsoft and Platform Reconciliation Files. Understanding this process helps Sellers accurately track and reconcile trial conversions in their billing cycles.

In this article:

• Understanding trial subscription billing
• Microsoft reconciliation file structure
• AppXite reconciliation file structure

Understanding trial subscription billing

When you purchase a new trial Subscription, it is typically valid for one month with no initial charges. If you convert the trial to a paid version on the same day, the billing system processes this as a conversion event.

Example scenario: You purchase a new Dynamics 365 Guides Subscription with 25 Licenses as a free trial on June 25th. Later that day, you upgrade it to a paid version at EUR 52.61/month unit price. The billing lines will appear on the July Reconciliation File for the June Billing Cycle.

Microsoft reconciliation file structure

The Microsoft Reconciliation File displays three separate line items for trial conversions:

The first line item shows no charges for the trial Product. The second line represents the refund from the trial version, which is zero because trial versions have no cost. The third line shows the prorated charge for the paid version from June 25, 2021 to July 24, 2021.

Calculation: Cost = Effective Unit Price (52.61 / 30 * 30) * Billable Quantity (25) = 1,315.25

AppXite reconciliation file structure

The Platform consolidates the refund and prorated fee for the converted trial Subscription into simplified line items:

The Platform combines the conversion process into two consolidated entries. The Purchase Fee line shows the initial trial activation with zero charges. The Correction line represents the prorated charge for the paid version, with the negative cost total price indicating the billing adjustment.

Summary

Trial Subscription conversions generate multiple billing line items in Reconciliation Files to track the transition from free trial to paid service. Microsoft Reconciliation Files show three separate entries for the new trial, conversion refund, and paid version charge. The Platform simplifies this by consolidating the conversion into two line items showing the Purchase Fee and Correction. All charges are prorated based on the conversion date within the Billing Cycle.

Related content

• How to review invoices and invoice data from Microsoft?
• How to get full Reconciliation Data