Q: I have a question about a customer changing plans where the pricing uses metered billing.

For example, the plan purchased by customer is plan1 with no of emails included in this plan as 100. Assume up-to-date email consumption is 500 emails, then the customer changes the plan in the middle of the month to the higher plan which will include 1000 emails included. 

-Plan1 include 100emails.

-Consumption is 500emails by mid of the month.

-Mid of the month – change plan to Plan2 include 1000emails.

Based on the documentation saying “Changes you make to a plan you are subscribed to will take effect immediately. The billing is prorated according to the billing term of the current plan.”

https://learn.microsoft.com/en-us/marketplace/saas-subscription-lifecycle-management#change-plans

Based on this scenario, how is the billing calculated? How are the exceeded emails calculated?

A: The number of included dimension units in a plan (emails in this case) is partner managed, so it’s something the ISV needs to track and measure and decide how to handle

In your case if a customer changes plan mid-month, given plan1 is $10 and includes 100 emails, and plan2 is $50 and includes 1000 emails, the flat rate cost will be prorated by Microsoft ($5 for half a month on plan1 plus $25 for half a month on plan2) but the allotted emails is at the ISV’Ss discretion (50 emails from half a month on plan1 and 500 emails for half a month on plan2).

Based on that calculation, the partner only sends metered overages when the customer goes over the 550 emails limit during that period.

There are other edge cases as well:

– if the customer used all 100 free emails in plan1 then wants to switch to a free plan, the ISV can block that plan change

– if the customer used 200 emails in plan1 and ISV already charged them the 100 extra, when the customer changed to plan2, they would have already paid for something that would be included in plan2 – the ISV cannot refund previously sent meters, but they can choose not to charge next time customer goes over their allotted emails count, or they can simply specify in the terms that switching mid-month causes this extra cost.

​Q: I have a question about a customer changing plans where the pricing uses metered billing.
For example, the plan purchased by customer is plan1 with no of emails included in this plan as 100. Assume up-to-date email consumption is 500 emails, then the customer changes the plan in the middle of the month to the higher plan which will include 1000 emails included. 
 
-Plan1 include 100emails.
-Consumption is 500emails by mid of the month.
-Mid of the month – change plan to Plan2 include 1000emails.
 
Based on the documentation saying “Changes you make to a plan you are subscribed to will take effect immediately. The billing is prorated according to the billing term of the current plan.”
https://learn.microsoft.com/en-us/marketplace/saas-subscription-lifecycle-management#change-plans
 
Based on this scenario, how is the billing calculated? How are the exceeded emails calculated?
 
A: The number of included dimension units in a plan (emails in this case) is partner managed, so it’s something the ISV needs to track and measure and decide how to handle
 
In your case if a customer changes plan mid-month, given plan1 is $10 and includes 100 emails, and plan2 is $50 and includes 1000 emails, the flat rate cost will be prorated by Microsoft ($5 for half a month on plan1 plus $25 for half a month on plan2) but the allotted emails is at the ISV’Ss discretion (50 emails from half a month on plan1 and 500 emails for half a month on plan2).
 
Based on that calculation, the partner only sends metered overages when the customer goes over the 550 emails limit during that period.
 
There are other edge cases as well:
– if the customer used all 100 free emails in plan1 then wants to switch to a free plan, the ISV can block that plan change
– if the customer used 200 emails in plan1 and ISV already charged them the 100 extra, when the customer changed to plan2, they would have already paid for something that would be included in plan2 – the ISV cannot refund previously sent meters, but they can choose not to charge next time customer goes over their allotted emails count, or they can simply specify in the terms that switching mid-month causes this extra cost.  Read More

​