Monthly Microsoft Azure Usage-Based Billing (via Pax 8)

For purposes of this article, usage-based billing includes reservations, which don't change from month to month but sync over from Pax8 as Azure charges the same way PAYG  ("Pay As You Go") charges sync over. (A reservation is a commitment to purchase a certain amount of the service every month. The purchaser gets a substantial discount on the unit pricing by committing.) 

Azure usage tends to disappear from the Pax8 portal from the 1-4th of each month, pending Azure finalizing all consumption from the previous billing cycle

Azure subscriptions for the previous month update on the fourth or fifth of the month. Roberta syncs charges and bills customers on that date (calendar appointment)  as follows: 

How to Sync Azure Charges to AT Contract

1. Log into Pax 8. Click Subscriptions on the left. 
   
2. Click the Azure subscription you want to sync to AutoTask (such as Microsoft Azure Plan),
   
3. Click the "show history" button.
   
4. Click the blue sync icon button on the far right. 
   
5. Click on Autotask icon to select Vendor to sync to. 
   
6. Choose the correct contract. (If this is the first time you're syncing this order, choose the account from Autotask Account dropdown and click "Bind.")
   
7. Set the first day of the current month as the Effective Date. This will set the item date in AT. (If not possible, edit the effective date in the Autotask charge.) 
   

"Effective date" does not change which data syncs. Only the previous month's usage will sync. This is merely the date the item will show as having been added in the AT invoice. 

6. Under the Material Codes dropdown box, choose "Azure Usage-Based Services."

7. Make sure the usage charges you see are for last month by checking the header, "Usage Month,..."

8. Click the Continue button on the bottom. 

9. Check one more time, especially the usage month for each item's Invoice Description. If everything looks good, click Confirm Sync. 

10. Confirm that the sync went through by checking the message on the screen. 

Synced usage charges show up in Autotask "Approve & Post" under Charges. You must approve the charges in AT before invoicing.   

How Billing for Reservations Works

If the customer is running an Azure service on Pay-As-You-Go (PAYG) and they purchase a 1-year Fabric Reservation partway through the billing cycle, rhe next invoice shows:

1. Existing PAYG charges that had already accrued.
   
2. The new Reservation charge.
   

How the Reservation Starts

The bill the customer receives from us on the 15th covers the reservation from the date of purchase until the same date of the following month; For example, if the reservation began on 4/21, the May 15th invoice will contain the reservation charge covering 4/21 through 5/20. The next invoice, dated June 15th, will include the reservation charge for 5/21 thought 6/20.

For the usage that already occurred under PAYG, Microsoft doesn't retroactively erase that usage. So those charges remain.
On the day the reservation becomes active, Microsoft applies the reservation benefit to the eligible Fabric capacity.

The first invoice after purchasing the reservation can show usage that occurred before the reservation was purchased. So it appears as if the customer paid PAYG and then paid the reservation too. But those are actually covering different time periods.

Bottom line: 

• You purchase a full 12-month reservation.
  
• The reservation term runs from the purchase date to the same date next year.
• The value of the reservation isn't lost because you bought it mid-month.
  
• The reservation term is measured from purchase date to expiration date, not by Microsoft's monthly invoice boundaries.
  

So if purchased:

• April 27, 2025

The reservation expires:

• April 27, 2026

You still receive the full 12-month reservation term.

The billing cycle still follows Microsoft's normal monthly billing cycle of billing on the first. (PAx8 makes the charges available on their sight for syncing on the 5th of the month. We invoice the customer on the 15th of the month.)

The reservation period and invoice period are two different things.

Once they have the reservation, they can use those resources 24/7 without worrying about additional usage charges for that reserved amount. The reservation essentially covers the committed capacity. If they stay within that reserved capacity, they aren't paying the higher PAYG rate for that same capacity.

Summary

Reservations begin immediately when purchased.

1. Previous PAYG usage is not removed retroactively.
   
2. The first invoice often contains both PAYG charges and the reservation charge.
   
3. The reservation term runs from purchase date to purchase date one year later.
   
4. Microsoft's monthly invoice cycle and the reservation term are separate concepts.
   
5. Once active, the reservation covers the committed Fabric capacity and provides the discounted rate compared to PAYG.
   

 

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