How Prorate works for licenses
Sync 365 Licenses, leverages the prorate option for Connectwise Manage agreements to allow you to effectively bill your Office 365 license.
This article provides a description on how we implement this.
By ticking the “Prorate Agreement” tick box in your connectwise manage agreement, you allow us to prorate your agreement additions when licensing counts change.
This describes how Sync 365 License implements this.
You have 10 Office 365 business premium licenses that you are billing a customer for.
You invoice the client monthly for these licenses billing the current month. I.e. it is the start of March and you invoice the client for the period of March 1st – 31st of March.
During the month of March on the 17th, you add 2 additional licenses for this customer. When we detect the additional licenses we will
- Update the current license count to 12
- Add an additional line item for the 2 additional licenses. With a start date of the day it is added (17th of March in this example) and an end date of the end of the current billing period (31st of March in this example)
When you generate an invoice in April, the customer will receive the invoice for the total of 12 licenses + the 1 additional line item for the prorate amount for the 2 additional licenses between the 17th and 31st of March.
Following this invoice they will only have the 1 line item on the invoice (unless the quantity is increased again)
Invoice month in advance
If you invoice your customers for 1 month in advance (in this example we would be creating an invoice in March, which would be invoicing for the period of April 1st – 30th), then the prorate addition will be prorated from the date it is added, until the end of the current billing period (30th of April in this example).
For the next invoice the customer would be invoiced for their May licenses + the prorate line item from the date the new licenses were added, until the 30th of April. This would then get the billing in line.
Please feel free to contact us with any questions – firstname.lastname@example.org