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Upgrade to Microsoft Edge to take advantage of the latest features, security updates, and technical support. Pricing and offers for Office 365, Dynamics CRM, Enterprise Mobility Suite, Azure, and more
In this articleAppropriate roles: Global admin | User management admin | Admin agent | MPN Partner Admin | Sales agent | Billing admin To see the latest Cloud Solution Provider (CSP) programs and offers, from the Partner Center dashboard, go to the Pricing workspace. There you'll find separate price lists for the different types of products that are available, including the following:
Note Only CSP partners with the capability to transact can view and download price lists. Indirect resellers should contact their CSP provider to request details about pricing Price list preview and change frequencyLicense-based services include a price list preview, provided 30 days in advance of any changes. To see the price list preview, go to Sell > Pricing and offers. EndOfSale offers will not be present in current month's price list.There's no price preview for usage-based services since these services are dynamic. The following table explains how to read the price list table.
Price changesPrice changes are a common occurrence. Partners can anticipate price changes for license-based offers by looking at the price list preview. On the Partner Center dashboard, select the Pricing workspace to see the price list preview. However, Azure usage-based pricing has no preview. Partners can keep up with Azure consumption price changes by using the RateCard API, which returns that day's meter pricing.
Usage-based prices can change throughout a month. To get 'current' daily pricing for these Azure resources, partners need to call the RateCard API. Note Subscription price changes apply only during a renewal. A partner's monthly charge is determined at the price of purchase, or the price at the time of creating a subscription. If a price increases or decrease after the annual term is acquired, the partner is not charged the changed price until the renewal, which is typically at the 12-month term. Pricing and special segmentsCSP offers some services to special market segments, for example, education, non-profit and government community cloud. Not all services are available in every channel. No segment defaults to what we call the commercial segment. All license-based pricing is available in the license-based price list on the Price lists page. Azure Government pricing is available in the usage-based price list when signed into the Azure Government enabled CSP tenant. Software subscriptions don't yet support these special segments.
Partner margins, the difference between the list price and the estimated retail prices, may vary from segment to segment. Typically, education and non-profit tend to have lower or no margins for CSP partners. Refer to the license-based price list for exact values. Add-on offer typesLicense-based services can be acquired as either base offers or add-ons. Only base offers are discoverable and purchasable via the Partner Center catalog. Partners need to apply add-ons only after purchasing the base offers. The license-based price list Secondary license type column includes information about each offer and its type. Base offers have Non-specific values in the price list secondary license type column and can be purchased in the catalog. Secondary license type values of add-on can’t be purchased in the catalog. To purchase these add-ons:
Note Some base offers have Unit type values of Add-on licenses. For a base offer this simply means that you do not assign user licenses after purchasing. If the offer can be purchased in the catalog it is a Base offer regardless of the unit type in the user interface. Add-ons are listed regardless of their segment. So a commercial Add-on could include education base offers. Or education base offers could include commercial base offers. This is by design. Partners should always use the prerequisite lists to understand that at least one of the prerequisites must exist before acquiring the add-on. Pricing between Azure and non-AzurePricing differs across different types of offers. License-based pricing is typically the amount per license for a given month. Usage-based pricing is determined by use of a given resource, with an associated meter ID. Partners aren't charged for acquiring the Azure subscription. However, partners are charged for resources consumed by different deployments under the Azure subscription. Pricing in the usage-based price list is organized around different resource meter IDs in Azure. Azure reservations are term-based purchases for the particular resource type - Virtual Machines. Purchasing an Azure reservation enables a partner to pre-pay (one- or three-year terms) and reserve a given virtual machine. Reservations save the partner money and ensuring their virtual machine is always available for the duration of the term. A partner can align the reservation they want against the usage-based resource meter IDs. The meter IDs are consistent across the resource, whether the partner is purchasing a virtual machine or simply deploying the virtual machine as a usage-based resource. Offers matrixOn the Pricing and offers page, view the Cloud Reseller Offer Matrix, to read about the different SKUs and product bundles available to you to sell. The offers matrix includes which offers are available per locale. If an item is listed on the price list but not on the offer matrix, it means that the products can’t be ordered yet. As soon as they're available to order, the offers matrix is updated. For CSP partners who use the Partner Center Software Development Kits (SDKs). Microsoft also publishes a list of the Azure Services in CSP on the Pricing and offers page. Offers matrix and price list questionsIf you have questions about the price list or offer matrix, submit a service request through Partner Center. Offer limitsSome license-based offers have certain rules and limitations that prohibit multiple purchases for the same customer. These rules apply to most trials and many of the small business offers. Small business offers are defined by those offers that have a maximum license count that is less than 300. These purchasing constraints are defined as part of the offer configuration and can be found by looking in the offer list matrix. Two columns of data work together to define the enforcement: 1. Offer Limit Scope and 2. Offer Limit. The constraints are enforced during a purchase. The catalog in Partner Center will disallow a partner from purchasing more offers than the rules allow. Any attempt to violate the constraints will result in an error. Offer limit scope is recorded as a column on the offer list matrix and can have values of None, Lifetime or Concurrent.
Important Concurrency limits are enforced even if an offer is canceled. An offer must be completely canceled and then deprovisioned in order to free up an additional space allowing for another purchase. Taxes and pricingAll pricing in Partner Center CSP price lists is tax-exclusive. For more information in the Partner Center document Taxes and tax exemptions. Offer attestationSome offers require the partner to agree before buying. This process is called attestation, and the only offers requiring attestation are Windows 365 Business offers with Windows Hybrid Benefit. Partners will see text on the review screen when purchasing these offers that says, "I understand that each person using Windows 365 Business with Windows Hybrid Benefit also needs to have a valid copy of Windows 10/11 Pro installed on their primary work device." Partners must agree to this before purchasing. Attestation applies both to the Partner Center portal and the Partner Center APIs when submitting orders and checking out carts. Partners can determine which offers require attestation by checking the AttestationProperties on the offer or SKU objects. These properties will explain the attestation type and if the attestation is enforced for purchases (enforceAttestation=True). If required, partners simply set
the The following offers currently require attestation prior to purchasing
Multi-year term offers36 month offersThere are approximately 50 Dynamics offers that have three-year terms. These are identified by (36 mo) in the title of the offers. These offers are similar to the yearly term offers. The only difference is their term. These offers have a three-year term so, the subscriptions renew automatically after three years instead of one. Here's a summary of how these offers work:
72 month offersMicrosoft 365 A1 base offer has a six-year term. The Office 365 A1 add-ons are available after purchasing this base offer.
Here's a summary of how these offers work:
Estimated retail price (ERP)Most price lists include a list price, the price the partner is billed, and the estimated retail price. Estimated retail price (ERP) is also called Microsoft suggested retail price or MSRP. These two values, ERP and MSRP, represent the estimated market value of the products if a customer were to purchase the products directly from Microsoft. Here's where to find ERP/MSRP details for each type of product or service:
New commerce license-based pricingNote The new commerce experiences for license-based services include many new capabilities and are available to all Cloud Solution Providers (CSPs). For more information, see new commerce experiences overview. Pricing strategy in new commerce Microsoft 365/Dynamics 365 remains the same between traditional and new commerce. In principle, this means each currency will have one price and monthly plan charges for a term will remain constant through the remainder of the term. Partners will continue to be billed in their country currency. How to access price lists and whyNew commerce license-based price lists requests are by market/country. For example, if a partner wants to get pricing for products sold to a German (DE) customer, they would ask for the German (DE) price list. For European countries (and ONLY for European countries), these market-based price list files include pricing in all six supported European currencies (SEK, NOK, CHF, DKK, GBP, EUR). This is to enable the partner to understand how much they'll be billed in their currency regardless of the customer market. If a partner in Great Britain (GB), for example, wants to purchase a product SKU for a customer in Germany, they would get the DE price sheet and need only the Great Britain Pounds (GBP) pricing because the GBP price point is what the partner will be billed. Supporting pricing by market aligns the product availability to the pricing, enabling partners to get pricing for markets even when the product may not be available to customers their own country. This design also can support future scenarios if different markets with the same currency need different pricing. Pricing data is available to partners both from the Partner Center dashboard and through the pricing sheet API. Partners download the price list by navigating to the Price lists page. The new commerce offer price list and offer matrix will be labeled with New Commerce. Price lists include basic information about pricing (how much it costs). The offer matrix includes purchase information about the products (how to buy it). Much of the information included in these download files is also accessible through the various Partner Center APIs (catalog APIs and price sheet APIs). Price lists require the partner to select the market for the pricing they request while the Offer-list matrix is agnostic of market. Price list and offer-list matrix files default to the current month. To retrieve the previous month's price list, select the month and then download the pricing file for the desired market. Price changes should occur only on a monthly cadence. Partners can use the price list preview to know of price changes coming in the next month. Price changes mid-month rarely occur, usually to correct an error in the data. Any mid-month price changes will be broadly announced and be reflected in the price sheet with a new EffectiveStartDate. Market specific discountsSome markets include geo-specific discounts on top of the CSP margin discounts. Partners may discover pricing for select product SKUs having deeper discounts in some markets depending on the product SKU. Markets they may include a deeper discount are the United Kingdom, India, Australia or Canada. These discounts are very targeted and only impact a very small number of product SKUs. One example:
In this case the CSP price may be discounted in the GB market, so other EU markets will likely see a higher CSP price point, reflect as unit price in the price lists. This is by design for this particular product SKU. New commerce pricing versus traditional license-based pricingThere should be general consistency between tradition and new commerce pricing for most product SKUs. However, partners may notice slight differences when comparing legacy traditional license-based pricing to new commerce pricing. Partners can see more details about this in the November 2021 announcements in Partner Center. New commerce terms and billing frequenciesPartners will be billed in their currency based on the currency value in the price list. This billing charge will remain constant for a billing plan that is shorter than the term. Annual term (P1Y) prices reflect the 12 months, partners divide the total by 12 to get the monthly plan charge. The new commerce price list has three fields that work together to help the partner understand the amount they'll be billed when transacting. TermDuration describes how long the subscription will last. Most subscriptions support Annual or pay for one year (P1Y) and monthly pay for one month (P1M). The UnitPrice amount is for the term being purchased. If a partner purchases an annual term with monthly pricing, they'll be billed one-twelfth the total amount each monthly billing period. The amount billed each month for an annual term with monthly billing will be the same each month throughout the term. Price changes during the term don't affect billing plan charges for an existing subscription. Price changes are only relevant for renewals, transitions, and new subscriptions. Note New commerce trials will have a billing plan as "None" since there is no cost for trials. Monthly and annual termsThe price list includes termDuration data that explains how long the term lasts. Many products support both monthly (P1M) and annual (P1Y). However, not all products support monthly term. A few examples of this include: Microsoft Intune, Microsoft Defender for Cloud, some Phone System and Calling plans, and various Exchange Online stand-alone products. Partners should reference the current price list and filter by termDuration to view product SKUs by term. New commerce price listSelect the market and then export the price list file. The file is a compressed, comma-delimited text file.
New commerce price list detailsThe structure of items in the new commerce pricing file differs from the traditional office price list.
New commerce offer matrixThe offer matrix contains purchase information and rules for the product SKUs. It's market-agnostic. End of sale offers will still be present in the offer matrix, refer to price list for active offers.
Effective datesPartners will notice two important date time values in the price lists: EffectiveStartDate and EffectiveEndDate. Partners use these values to determine which line items are active and current. Sometimes line items are duplicate in the price list and partners can always look to the latest date ranges to identify the current line items and price points. Partners should always rely on the latest date range unless the date ranges overlap. Here's an example of overlap:
In the preceding example, a transaction made on November 2 would be related to the top line item. A transaction made on November 4 would be associated with the second line item. Overlap is a condition the Partner Center team is working to resolve because it can cause confusion for price list consumers. Price list previewNew commerce supports future pricing. Partners can export and view future pricing for the coming month. Traditional license-based price lists included flags for new offers, deleted offers, changed and unchanged. New commerce pricing files enable partners to track these changes by using the EffectiveStartDate and EffectiveEndDates. New offers will be identified when they are in the future price file but not in the current price file.
European regional pricesPartners transact in regions that are assigned when they're on-boarded. The European region is unique since this region supports more than one currency. Partners request pricing based on the customer’s market but will be billed in their currency, which may be different than the customer market currency. In these cases, a partner will get pricing in all supported currencies for the customer market they request pricing information for. All European market price lists will include pricing in all supported currencies in the European region. Partners will be billed based on the market price sheet and currency line item aligning with the partner billing currency. The multi-currency support enables a key scenario that had been blocked for years in traditional license-based, enabling a partner to purchase a product SKU for a customer in a different country when the product SKU isn't available in the partner's country. This scenario is now enabled and no longer blocked in new commerce. Products now available in this scenario include some of the calling plans only available in specific EU markets. Other examples include Business Voice product SKUs, only available in GB, but can now be purchased by non-GB EU partners for GB customers. Important details about the European regional price listsFor the January 10, 2022 release, partners may see some variant prices for markets with different currencies than their own. This is due to some system limitations that will be addressed going forward. Slight price differences in same currencies across different markets: Example:
Slight price differences for the same term but with different billing frequencies:
In both of these cases, partners can always rely on being billed the amount reflected in the price list for the customer market and partner billing currency. Offer limits in new commerceExisting license-based subscriptions enforced ownership limits, or the number of subscriptions a partner could purchase for a customer. These typically were small business SKUs or offers with less than a 300-seat maximum. In traditional license-based subscriptions, partners could see the limits in the offer list matrix for existing seat-based products as Concurrent describing the number of subscriptions the partner could have. New commerce implements a seat constraint across the purchased product SKUs. New commerce small business subscriptions with less than a 300 maximum will apply the maximum at the product SKU level. So a partner could have multiple small business subscriptions for a customer as long as the aggregate of the seat counts stays under the declared maximum. The maximum for small business applies regardless of where the customer's product SKU came from, that is, multiple partner or channels. Traditional license-based included a Concurrent setting with a limit value, usually of two. These settings mean the customer could have a maximum of two subscriptions for the offer from a given Partner. Here's an example of the traditional, license-based offer and the concurrency setting:
New commerce license-based uses a Max Seat Count with a value to enforce these small business limits. The product SKUs enforces this limit on any purchased subscriptions for the product SKU. So, a given customer could have four subscriptions from different partners if the total number of seats from all subscriptions was less than 300. The limit is on the number of aggregate licenses purchased for the product SKU, not on the number of subscriptions. Partners can view these values in the offer matrix for new commerce and get these values in the SKU using the catalog APIs. Here's an example of a new commerce product SKU with the max count value:
The maximum limits are pooled on the customer tenant. A customer could have 100 licenses of a product SKU from one partner, and another 100 from a second partner. But the aggregate limit can’t exceed the maximum. A transaction that exceeds the limit returns an error that includes the remaining number of available licenses, helping them to understand how many licenses are left under the maximum available. The error message will look like this: The requested number of 51 seats exceeds the remaining limit of 50 seats allowed per subscription for the CatalogItemId - CFQ7TTC0LCHC:0002:CFQ7TTC0KFFN. Partners will also see this information when using the APIs to add a lineItem to the cart that exceeds the limit as an error property availableQuantity. More information about the cart lineItem property can be found in the API documentation cart resource. Partners can validate these limits and the available quantity functionality in sandbox by testing specific product SKUs with lower maximum limits. Partners can reference the offer matrix to find these product SKUs.
SKUs with no costTrials are always free, but other product SKUs may also be free with no cost. Below are some examples of no cost product SKUs. The list of free product SKUs may grow over time, partners should be sure to reference the price list for the current list of free products.
Pricing and offer matrix APIsPricing and offer matrix APIs build on the existing price sheet API infrastructure that was released to support Azure plan. This API is now extended to support license-based new commerce pricing. The price sheet and offer matrix APIs supports pricing for updated new commerce license-based online services only. It doesn't support traditional office license-based services available for download only from Partner Center pricing and offers page. Next steps
When using lowerIn applying Lower-of-Cost-or-Market, the designated market value is the middle value of replacement cost, net realizable value and net realizable value less a normal profit margin.
Which of the following is true of lowerWhich of the following is true about lower-of-cost-or-market? It is inconsistent because losses are recognized but not gains, It usually understates assets, and It can increase future income if the expected reductions do not materialize.
Why are inventories stated at lower of cost and net realizable value to report a loss when there is a decrease in the future utility below the original cost?Why are inventories stated at lower-of-cost and net realizable Value? To permit future profits to be recognized. To report a loss when there is a decrease in the future utility below the original cost.
Why are upper and lower limits needed to value inventory in addition to replacement cost instead of just using the replacement cost?Why are upper and lower limits needed to value inventory in addition to replacement cost, instead of just using the replacement cost? It prevents companies from manipulating net income by manipulating replacement cost.
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