Admin Fee - MS CSP Legacy

Admin Fee under Microsoft CSP Legacy

As of the 1st of January 2023, Microsoft will discontinue the payment of incentives and rebates for partners of Legacy Commercial seat-based subscriptions. Due to this, there will be an introduction of an administration fee of 6% to be charged each month on commercial legacy CSP subscriptions to cover the higher cost to transact legacy agreements on your behalf.

 

Please note that only legacy CSP subscriptions using a legacy product that has a migration path to an NCE product will incur the CSP Legacy Administration Fee. Therefore, legacy CSP subscriptions for Non-Profit or Education will not be applicable for the CSP Legacy Administration Fee.

 

How do I find what CSP Legacy subscriptions I have?

Within PRISM, we have an NCE Conversion report that can help you to understand what subscriptions you have under legacy CSP vs NCE. Please see the following article to understand and use this feature.

 

How do I migrate CSP Legacy subscriptions to New Commerce Experience (NCE)?

Within PRISM, users have the ability to migrate subscriptions from legacy CSP to NCE CSP, please see the following article to see the steps to take to migrate a subscription (this can be done individually or in bulk). 

How will the CSP Legacy Administration Fee be calculated? 

The CSP Legacy Administration Fee is charged at a tenant level, where all applicable subscription line items will be totalled, and then 6% of the total will become the value of the Administration Fee. Example below uses products where some but not all are applicable for the CSP Legacy Administration Fee. 

 

Example of the CSP Legacy Administration Fee on a dummy tenant:

 

 

For this example, product "Dynamics 365 Business Central Essentials (365 mo) Cloud Migration Promo" is not applicable for the CSP Legacy Administration Fee.

Dynamics 365 Business Central Device 49.41 * 1 = 49.41 (Applicable)

Dynamics 365 Business Central Essentials (36 mo) 86.49 * 1 = 86.49 (Applicable)

Dynamics 365 Business Central Essentials (365 mo) Cloud Migration Promo 51.93 * 1 = 51.93 (Not Applicable) 

 

We sum up the line item totals of the applicable products = 49.41 + 86.49 = 135.90

6% of 135.90, rounded up is $8.15; therefore, the Microsoft CSP Legacy Admin Fee line item value is $8.15

 

How will the CSP Legacy Administration Fee appear on my invoice?

The CSP Legacy Administration Fee will appear as a separate line item on your invoice, example below.

Product/SKU Name: Microsoft CSP Legacy Admin Fee

Product/SKU ID: MS-LEGACY-FEE

 

Items to note:

The Usage Start Date and Usage End Date for the CSP Legacy Administration Fee will by default show as the full calendar month, these dates are related to the usage period as shown on the first page of your invoice, not the dates the subscriptions under this specific tenant were active (the calculation as shown in the previous question though it related to the subscription dates)

The Quantity will by default appear as one (1)

 

Example of the CSP Legacy Administration Fee on a dummy invoice:

 

 

Within the invoice CSV file, this data will also be visible as per the below example:

Example of the CSP Legacy Administration Fee on a dummy csv file:

 

 

Notes/Limitations

1. The Microsoft CSP Legacy Admin Fee will show with a subscription ID (as shown in the CSV File example above), this ID is a PRISM ID only and doesn't relate to Partner Centre in any way
2. On Invoice and Invoice CSV data, Recommended Retail Price (RRP) will show as the same value as Partner Price

Please note that all products, subscriptions, pricing and SKUs referenced in this article are examples for testing and not accurate data for pricing and/or product logic.