Invoice Example – Promotions
Introduction
This article explains how promotional discounts are reflected in Microsoft and Platform reconciliation files. It guides users through understanding the difference between pre-promotion and post-promotion pricing, and how these adjustments flow through the distribution channel from vendor to end customer.
In this article:
- How promotional pricing appears in Microsoft reconciliation files
- How promotional pricing appears in AppXite reconciliation files
- Customer price calculation example with promotions
How promotional pricing appears in Microsoft reconciliation files
When you purchase a new subscription that qualifies for a promotional discount, Microsoft's reconciliation file displays both the original price and the discounted price.
Example scenario: You purchase a new Microsoft 365 Business Standard subscription with 10 licenses on June 18th for EUR 3 per license (monthly term and monthly billing) that qualifies for a 10% promotion.
The Microsoft reconciliation file contains the following information:
| Order Date | Charge Type | Cost Price | Total | Charge Start Date | Charge End Date | Effective Cost Price | Billable Quantity | Price Adjustment Description |
|---|---|---|---|---|---|---|---|---|
| 6/18/2021 | new | 3 | 27 | 6/18/2021 | 7/17/2021 | 2.7 | 10 | 10 |
In the Microsoft reconciliation file:
- The Cost Price column shows the pre-promotion price
- The Effective Cost Price column shows the post-promotion price after the discount has been applied
- The Price Adjustment Description column indicates that the specific transaction has a discounted price
How promotional pricing appears in AppXite reconciliation files
The Platform automatically includes promotional pricing throughout the entire distribution channel, from vendor to Distributor to Seller to Customer.
The Platform reconciliation file for the same transaction contains the following information:
| Charge Type | Revenue Cost Price | Revenue Total Price | Charge Start Date | Charge End Date | Cost Price | Customer Quantity | Cost Total Price |
|---|---|---|---|---|---|---|---|
| Purchase Fee | 5.25 | 52.5 | 6/18/2021 | 7/17/2021 | 2.7 | 10 | 27 |
Depending on the price source and applied Markup in the platform, the Customer Price and Customer total Price will automatically include promotional adjustments.
Customer price calculation example with promotions
Customer Price is calculated using the Suggested Retail Price with a 5% markup applied.
Calculation breakdown:
- Suggested Retail Price for the product is EUR 5
- Apply 5% markup: 5 EUR × 5% = 0.25 EUR
- Subtotal before promotion: 5 EUR + 0.25 EUR = 5.25 EUR
- Calculate promotion discount: 5 EUR × 10% = 0.5 EUR
- Final Customer Price per license: 5 + 0.25 - 0.5 = 4.75 EUR
- Customer total price for 10 licenses: 4.75 EUR × 10 = 47.5 EUR
Summary
Promotional discounts are automatically reflected in both Microsoft and the Platform reconciliation files. Microsoft shows pre-promotion prices in the Cost Price column and post-promotion prices in the Effective Cost Price column. The system automatically applies these promotions throughout the entire distribution channel, adjusting Customer pricing based on the configured price source and Markup settings.
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