Coterminosity Explained: CloudCockpit Billing Alignment

Coterminosity Explained: CloudCockpit Billing Alignment

Understanding Coterminosity in CloudCockpit Billing

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Coterminosity is the ability to align the end dates of subscriptions to make renewals easier. It is a powerful feature available in the new commerce experience, allowing you to provide smooth and predictable billing cycles to your customers.



Coterminosity Alignment Rules

Coterminosity can be activated when a subscription is created or when it is renewed. A subscription can be made coterminous with an existing subscription according to the following table:

Matrix Coterminosity Rules; Microsoft CSP Handbook (p.47)

In summary, a new or renewing 1-year or 3-year subscription may not be made coterminous with a 1-month subscription.




Activating Coterminosity for an existing subscription

Activating coterminosity for an existing subscription does not change the end date of the existing term, rather it schedules the coterminosity to be activated when the subscription next renews.

Let's illustrate this with an example:

Imagine that CSP Company has an existing 1-year subscription for Office 365 E5 that ends on November 9, 2023. On March 15, 2023, they want to purchase Office 365 E3 licenses for a 1-year term and align the subscriptions. Here's how it works:

  1. The existing subscription is represented in dark blue, with renewal terms in a lighter blue.
  1. The new subscription is depicted in dark orange.
  1. By default, the new subscription would end on March 14, 2024.
  1. Upon aligning the new 1-year subscription with the existing one, the end date exactly matches the existing subscription's end date.

Aligning a new 1-year subscription to an existing 1-year; Microsoft CSP Handbook (p.50)

The initial term of the new subscription is shorter, and charges are prorated accordingly (shown in dark orange at the bottom of the diagram).



Aligning subscriptions with the end of the calendar month

When purchasing a new subscription, there's an option to align its end date with the end of the calendar month. This ensures that multiple subscriptions can be renewed simultaneously, simplifying the management process for both you and your customers.

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