How does billing and invoicing work as an Azure Service Provider?

Products

• CloudHealth

Issue/Introduction

The platform helps Azure partners automate and streamline the billing and invoicing process.

How Azure Customer Bills Are Processed

The platform does not split a partner-level consolidated bill. Instead, it uses the following approach:

1. The Utilization API is used to determine the daily usage by each customer of each Azure service or asset.

2. The billing rates for each asset or service are derived from the Azure Rate Card.

3. These rates are multiplied by the per-asset or per-service usage to get the total cost attributable to each partner customer.

4. Any partner-defined billing rules are applied.

5. Any partner discounts provided by Microsoft are applied.

6. Finally, a per-customer bill is generated. The bill has the same format as the reconciliation report but will only display lines applicable to a customer.

Pass Microsoft CSP Discount On to Customers

Microsoft provides CSPs a discount on their customer's bills. Using the platform, a CSP can pass this discount onto their customers.

Consider an example where a partner customer spends $100. As a result of the CSP discount (15%), the partner receives a bill for$85 for that customer. The partner can pass on this discount to their customers.

1. Log in to the platform as a partner. From the left menu, select Partner > Customers > List. Then click the Edit button next to a customer.

2. On the Customer Edit page, select the Azure tab and clear the checkbox for Charge PAYG pricing.

3. Click Update. The platform bills the customer at the same discount rate that the CSP receives.

 

If CloudHealth has already processed bills for this customer using the PAYG rate, contact our support team to amend the customer's bills.