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justinroyal
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Nov 10, 2024

FAQ: Early billing for a multiyear deal

Q: I have a customer who wants an early billing for the anniversary billing for a multi year deal. It is a three year deal with yearly payment, first time in February 2024. Now the customer wants the second payment in 2024 as well, not at the anniversary in February 2025. Is this possible?

A: No. Billing dates and amounts are locked when the multi-year commitment is purchased. Future scheduled charges cannot be pulled forward or modified.

Follow-up Q: After further discussion with the customer, it is a different scenario: The customer signed a 2 year deal with yearly payments on Oct 27, 2023 and the first payment for the period 10/17/2023 to 10/16/2024 landed in November 2023. However, I do NOT see the 2nd payment yet as I would have expected. 

The (new) customer ask is to continue the 2 year deal as planned but postpone the 2nd payment to 2025 - which of course will be difficult if it is already done. If it is NOT done for whatever reason, I assume the ISV should ask to cancel the 2nd payment (and the offer) and then create a new offer, starting now, but with a custom meter payment in 2025. Agree? 

A: Did the customer actually purchase a plan with 2-year term? If it was instead only 1-year with recurring billing off, then subscription may have expired - hence you do not see a second charge. I'd encourage customer to check their Cost management for Azure Marketplace purchases - Microsoft marketplace | Microsoft Learn

 

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