customers have Net0 terms invoiced in arrears. For example: your May 1st invoice covers service for the month of April. 

Effective 4/1/22 with the introduction of Microsoft NCE, Microsoft 365 services will be prorated. Services outside of Microsoft 365 will continue to be billed without proration as has been traditionally our policy. Any services that are active during the billing snapshot on the final day of the month will be invoiced. Any Microsoft 365 services that have been consumed during that month will be invoiced according to Microsoft’s proration calculation.

Under the New Commerce Experience (NCE), Microsoft services are subject to the following premiums: Annual terms paid upfront have no premium. Annual subscription terms paid monthly (rather than upfront) are subject to an 8% premium. Monthly subscription terms are subject to a 20% premium, per Microsoft’s regulations.

EXAMPLE: Office 365 E1 license has a “base” MSRP (customer price) of $10/month. An annual term subscription paid upfront would be $120. An annual term subscription paid monthly would be $10.80/month. A monthly term subscription paid monthly would be $12/month.

IMPORTANT: Under Microsoft NCE, term lengths are strictly enforced. Cancellations or reductions can occur within 24 hours of subscription purchase at no cost to the customer (actual hours, not business hours). Cancellations or reductions completed within 7 days hours (actual days, not business days)  can be performed but will be subject to a prorated amount due. Outside of that timeframe, customers are unable to cancel or reduce the number of licenses under that subscription to completing the term (Annual or Monthly) and monies will be due regardless of company status, need for the licenses, etc.