CSP Billing Changes

Microsoft is changing some programmatic rules around their CSP program. Microsoft is removing the unbilled 'grace period' between subscription start date and billing date in October 2017. As such, rhipe is discontinuing this feature.

 

What are the changes in rhipe CSP billing?

rhipe is changing to billing in arrears to help you understand your CSP invoice more easily and reduce your operational overhead. The changes are as follow:

  1. Change in Billing Cycle - as of September 2017, the billing cycle will shift from 15th to 14th day of the month to 1st to last day.
  2. Change to Billing in arrears– also, as of September 2017 the invoices you receive will be in arrears, to be issued the 1st day of the month for the previous month.

For us to implement these changes, there will be a transition period. This will affect your invoices for September and October:

  • August 2017: Microsoft CSP invoices issued as per usual billing cycle and method – no changes.
  • September 2017: You will receive a mid-month invoice ONLY for the adjustment of CSP subscription for the previous month (cycle: 15th Aug to 14th Sep). There won’t be any charges for the period Sept 15th to Oct 14th.
  • October 2017: rhipe will not issue an invoice in mid-October.
  • November 2017: On 1st November, you will receive an invoice for the period 15th September to 31st October (47-day usage invoice). You are no longer charged in advance.
  • December 2017: On 1st December, it’s back to the new normal, you will receive an invoice for your customers’ CSP license subscriptions for the period 1st November to 30th November (new billing cycle), in arrears.

You will continue to receive the arrears invoice every month for your customers’ CSP license subscriptions for the prior month from January 2018 onward.

A summary of the change to billing in arrears can be found below:

Month Billing Type Billing Cycle Billing Date
August Prepayment + Adjustment Aug 15th to Sept 14th + prior month adjustment Aug 15 – 20
September Adjustment Prior month adjustment only Sep 15 – 20
October No Invoice No Invoice No Invoice
November Arrears Sep 15th to Oct 31st Nov 1st
December Arrears Nov 1st to Nov 30th Dec 1st
January Arrears Dec 1st to Dec 31st Jan 1st

 

How do my invoices during the transition period from September to November look like and how are they different from the current invoice?

September Invoicerhipe will begin the transition to billing in arrears.

You will receive a mid-month invoice ONLY for the adjustment of CSP subscription for the previous month (cycle: 15th Aug to 14th Sep).

There is no prepayment for the subscriptions for the next 1 month. I.e. There won’t be any charges for the period Sept 15th to Oct 14th.

An example of the September invoice can be seen below:

CSP_Billing_Change_Sept.png

 

For the 1st customer Easy Accounting Services

  • You will see on the invoice that “Easy Accounting Services” changed from 3 to 5 x Office 365 Business Essentials licenses on 17 August 2017.
  • You will see the usual credit for the amount pre-paid in August and the true-up of the actual usage for the month.
  • You should also note that there are no pre-payment line items on this invoice.

For the 2nd customer example Johns and Associates Accountants

  • You will see on this invoice that there were no quantity changes made in the month.
  • As such there are no pre-payment line items and there is nothing further to pay as the subscription 15 Aug 2017 – 14 Sep 2017 usage was already pre-paid in August.
  • You will see the term PREPAID, which means that the subscription was prepaid in the previous month already.

Note: You will see in the footer of this invoice that it is payable in the usual 14 days and therefore due on 30 September 2017.


October Invoice - No Invoice generated

 

November Invoice - rhipe transitioned to billing in arrears.

you will receive an invoice for the period 15th September to 31st October (47-day usage invoice). You are no longer charged in advance.

An example of the November invoice can be seen below:

CSP_Billing_Change_Nov.png

For the 1st customer Easy Accounting Services

  • You will see on this invoice that “Easy Accounting Services” changed quantity of Office 365 Business Essentials licenses from 5 to 6 on 18 September 2017.
  • You will also see that they again changed from 6 license to 8 on 21 October 2017.
  • As this is now a “billing in arrears” invoice you will see that a line item is shown for each change in quantity and there are no pre-payment line items.

For the 2nd customer Johns and Associates Accountants

  • You will see on this invoice that there were no quantity changes made in the month.
  • As this is now a “billing in arrears” invoice you will only see a single line item for the 47 days of usage and no pre-payment line item.

Note: You will see in the footer of this invoice that it is payable in the usual 14 days and therefore due on 15 November 2017.


December Invoice
On 1st December, it’s back to the new normal, you will receive an invoice for your customers’ CSP license subscriptions for the period 1st November to 30th November (new billing cycle), in arrears.


Why is rhipe changing the CSP billing?

There are two main reasons for the change.

Firstly, Microsoft is changing some programmatic rules around their CSP program. Microsoft is removing the unbilled “grace period” between subscription start date and billing date in FY18 Q1. As such, rhipe is discontinuing this feature.

Secondly, rhipe has received feedback that that the CSP billing is complex and difficult to understand. As a service and customer oriented organization, rhipe has decided to make the change simplify the billing to enable our partners to view and understand their invoices more easily.


What are the benefits for me as a partner for the change to billing in arrears?

Our partners will get the following benefits as we switch to billing in arrears:

A much easier to understand CSP invoice will allow you to spend less time reconciling our invoice to you with your customers’ invoices. This will lower your operational overhead, reduce your operating cost and allow your staffs to focus on other important tasks.

You will also have better cashflow for your business after the change from prepayment to billing in arrears for your CSP subscriptions with rhipe.

 

What is the new billing cycle?

The billing cycle of the new CSP billing is the from the 1st of the month to the last day of the calendar month.

 

What is my payment due after the change to billing in arrears?

Your payment term remains unchanged. Your payment is due within 14 days (for AU/NZ partners) or 30 days (for SEA and Korea partners) upon invoice.


How do I pay my invoice?

The ways you can pay your invoice remain unchanged.

  • For Australia partners, you will need to set up Direct Debit when you sign up for CSP program.
  • For SEA partners, you can pay your invoice by cheque or electronic fund transfer to rhipe.
  • For Korea partners, you can pay by credit card or electronic fund transfer to rhipe.

You can view your invoice in the rhipe Prime Portal under Invoices.

When you pay by direct credit or cheque, please also include your invoice #, customer ID, date and amount enclosed in your remittance advice.

 

Who do I contact with any billing enquiries?

If you have any billing enquiries, please contact your account manager first.

For payment enquires, please contact: accounts@rhipe.com

For other queries (like invoice question etc.) contact program.operations@rhipe.com 

 

As there is no free period now, what can I do to avoid double billing when I transition my customers’ tenants to rhipe CSP?

Microsoft now has new free trial SKUs in CSP that you can leverage on to avoid double billing during the transition of tenants to rhipe CSP. The free trial SKUs that would soon be available are:

  • Office 365 E3
  • Office 365 E5
  • Enterprise Mobility & Security E5
  • Dynamics 365 Customer Engagement Plan 1
  • Dynamics 365 for Financials (Not available in APAC)

The 30-day trial licenses would let your customers try different Microsoft online services before they decide, or you can purchase them as interim SKUs before a customer tenant is fully transitioned from other programs/resellers to rhipe CSP to avoid double billing.

 

Do I need to opt in to the change to billing in arrears?

There is no need to opt in to the change to billing in arrears as the change will take place automatically for all rhipe CSP partners.

 

Can I opt out of the change to billing in arrears?

The change to billing in arrears applies to all rhipe CSP partners and there is no option to opt out.