Configuring Subscription Cost Updates in Work 365 Using Microsoft Partner Center Integration

Applies to: Work 365, Microsoft Partner Center
Audience: Billing Teams, Administrators

Overview

In Work 365, partners can configure subscription costs to reflect the true cost from the Provider Invoice by adjusting settings in the Microsoft Partner Center connector. This feature enables the system to automatically update subscription costs during the daily synchronization process, using the latest provider invoice data.

Configuring Subscription Cost Updates

1. Access the Microsoft Partner Center Integration Settings

✅ Navigate to the Microsoft Partner Center Integration within Work 365.
✅ Click on the gear icon and select "Edit".

2. Set Cost Management Option

✅ In the "Properties" section, locate the "Cost Management" setting.
✅ Choose one of the following options:

✅ Selecting "Provider Invoice" enables the system to update the subscription cost price based on the latest provider invoice during subscription synchronization.
✅ The system interprets the line using the Effective Unit Price to update the cost price.

? For further details, refer to: Work 365 Documentation on Subscription Cost Updates.

Important Considerations

1. Data Requirements

For this feature to function correctly, the provider invoice must include:
✔ A non-blank Currency field that matches a currency available in the partner’s Work 365 environment.
✔ A non-blank Billing Frequency field or a non-blank Provider Billing Frequency on the subscription in Work 365.

2. Ignored Lines

The system disregards lines where the ChargeType is:
❌ "addQuantity" – as this does not represent the full non-prorated cost.
❌ "customerCredit" – as this is not an actual charge.

3. Pro-Rata Charges

⚠ Due to the structure of the Microsoft Provider Invoice, costs may not be accurate when there are changes that cause pro-rata lines (e.g., quantity additions or removals).
✔ Correct costs will reflect in subsequent invoices where no pro-rata charges are applied.

4. Promotions

✔ If not relying on promotions, partners may prefer using Product Service to identify margins and costs.
✔ When using Product Service, costs will not be updated automatically and will remain until manually updated.

5. Scope of Application

⚠ Cost settings are managed at the provider level and cannot be adjusted per subscription or customer.

Recommendations

1. Enable Audit History

✔ Activate audit history after enabling the cost management feature to track cost price updates effectively.

2. Choose the Right Cost Management Strategy

Conclusion

By configuring the Microsoft Partner Center connector appropriately, partners can ensure that subscription costs in Work 365 accurately reflect the true costs from provider invoices. This maintains financial accuracy and facilitates effective cost management.