Overview

Work 365 supports daily-rated billing, ensuring that billing accurately reflects the exact number of days a subscription or service was active within a billing period. This is particularly important for scenarios where subscriptions are added, changed, or cancelled mid-period or where Microsoft charges on a daily basis for certain products (such as Azure Reserved Instances).

Key Benefits

• Billing accuracy Charges reflect actual usage days, not full-period approximations.
• Microsoft alignment Keeps Work 365 billing logic in sync with Microsoft Partner Center's daily-rated charge model.
• Reduced reconciliation variances Fewer discrepancies when running billing reconciliation, particularly for mid-month changes.
• Supports RI billing Works in conjunction with the Reserved Instance Recon Billing model.

When Daily-Rated Billing Applies

Daily-rated billing calculations apply in the following scenarios:

• Subscriptions activated or terminated mid-billing period.
• Quantity changes with an immediate effective date.
• Products billed by Microsoft on a daily pro-rata basis.

This setting needs to be explicitly selected. Work 365 automatically applies the correct daily rate calculation based on the subscription's start and end dates within the billing period.