Promotions Charges

This scenario will describe how promotions are calculated and shown in reconciliation file by Microsoft and AppXite Platform.

Summary:

  1. Microsoft lists promotion discount in column Total Other Discount in the reconciliation file.
  2. Microsoft adjusts Unit Price to include discount applicable.
  3. Microsoft keeps column Amount value calculated based on list Unit Price from pricelist. 
  4. Microsoft calculates column Subtotal value based on full Unit Price (no rounding applied).
  5. Unit Price shown in reconciliation file is with two digits after comma (remaining digits after comma are cut off).
  6. As arithmetic calculation does not coincide between multiple of Unit Price and Quantity and sum in the Amount and Subtotal columns that can lead to extra questions from partners about data accuracy.
  7. Reconciliation data from Microsoft cannot be automatically imported into most ERP systems that as a default setting calculate invoice amount by multiplying Unit Price with Quantity.
  8. AppXite Platform will include Unit Price with discount applied and corresponding calculation. 

Scenario: 

Customer has purchased Microsoft 365 A3 for faculty licenses. In the next month offer becomes eligible for select partners for promotion of 25%.

To incorporate discount Microsoft will reduce Unit Price 41.62 EUR by 10.405 EUR to 31.21 EUR i.e., 25% reduction.

However, Microsoft will not adjust Amount column and it will still include calculation based on original price from the pricelist 41.62 EUR multiplied with license quantity. 

Discount adjustment is visible in Subtotal column.

Example case as in Microsoft reconciliation file:

No

Unit Price

Quantity

Amount

Total Other Discount

Subtotal

1

31.21

135

5 618.70

1 404.68

4 214.02

As can be seen then column Amount is calculated 41.62 x 135 = 5 618.7 EUR.

Subtotal amount includes Total Other Discount deduction: 5 518.7 - 1 404.68 = 4 214.02 EUR.

Important to note: Microsoft uses full price to calculate Subtotal i.e., 31.2150 EUR x 135 = 4 214.025 EUR and cuts off all digits up to last two after comma. This can lead to a scenario where customer multiplies Unit Price with Quantity and gets slightly different result compared to Subtotal column 4 213.35 EUR vs 4 214.02 EUR.

In addition, if customer would multiply Unit Price with Quantity it would produce different result compared to result in Amount column - 5 618.70 EUR vs 4 214.02 EUR.

At the current moment AppXite Platform will shown only updated Unit Price that includes discount.

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