Processing Microsoft Credit Notes in Work 365

Applies to: Work 365, Dynamics 365
Audience: Administrators, Billing Teams

Overview

Processing Microsoft credit notes in Work 365 is crucial for maintaining accurate financial records and ensuring billing adjustments are properly accounted for. This guide outlines the step-by-step process to efficiently handle Microsoft credit notes in Work 365.

Steps to Process a Microsoft Credit Note

1. Identify the Credit Note

✅ Receipt of Credit Note
✔ Upon receiving a credit note from Microsoft, review its details to understand the adjustments made.

✅ Associated Invoices
✔ Determine which original provider invoice(s) the credit note pertains to.

2. Create a Corresponding Provider Invoice in Work 365

Step 1: Navigate to Provider Invoices

Go to:
? Billing and Invoicing > Provider Invoices

Step 2: Create a New Provider Invoice

✅ Click on New to create a new provider invoice.
✅ Enter details matching the credit note from Microsoft, including:

Step 3: Activate the Invoice

✅ Set the Status Reason to Active.
✅ Click Save to finalize the creation.

3. Adjust Usage Summaries

Step 1: Access Usage Summaries

Within the newly created provider invoice, navigate to:
? Child Records > Usage Summary

Step 2: Review Associated Records

✅ Check for any existing usage summaries linked to the original, incorrect provider invoice.

Step 3: Delete Incorrect Usage Summaries

✅ If no customer invoices have been generated from these summaries, select and delete them to prevent duplication.

⚠ Note: Only 250 line items can be deleted at a time.

4. Handle Invoiced Data

✅ If invoices have already been generated, follow these steps:

Step 1: Delete the Incorrect Invoice

✅ Locate and remove the invoice associated with the erroneous provider invoice.

Step 2: Create a One-Time Non-Recurring Item (NRI)

✅ For each affected billing contract, create an NRI with a negative amount equal to the overcharged value.
✔ This action offsets the previous incorrect charge.

Step 3: Generate a Corrected Invoice

✅ Manually generate a new invoice that includes:
✔ The corrected usage summary.
✔ The negative NRI reflecting the credit.

Important Considerations

Daily Rated Reconciliation Files
✔ Microsoft may not provide a daily rated reconciliation file for credit notes.
✔ Manual entry and adjustments in Work 365 are necessary to mirror these credits accurately.

Data Integrity
✔ Regularly review provider invoices and associated usage summaries to ensure all billing data is accurate and up-to-date.

Conclusion

By following these structured steps, you can efficiently process Microsoft credit notes in Work 365, ensuring:
✔ Accurate billing adjustments
✔ Maintained financial integrity
✔ Prevention of billing discrepancies