At the center of Work 365, is a Billing Contract; which encapsulates the relationship between the partner and the Customer.
A customer can have more than one Billing Contract and multiple Billing Contracts should be created if there are more than one relationship and/or the terms of the relationship are different.
For example, If Contoso Pharmaceuticals wishes to pay for Office 365 Business Essentials annually, but prefers to pay for Azure Consumption monthly; then two Billing Contracts will be created. In this case, if both subscriptions are payable at the same frequency (Annually, Monthly or Quarterly) then, a single Billing Contract can be used (assuming all other aspects remain the same).
A Billing Contract can have one or more Subscriptions – which is the actual service or product that the customer consumes and pays for on a recurring basis.
- A subscription can License-Based, where the customer signs up for a unit based product (e.g.: Office 365, Dynamics 365, user or desktop-based anti-virus software, etc.).
- Service-Based subscriptions are behaviorally like license based subscriptions but should be used to indicate a unit based service purchase (Support Services Basic, Support Services Advanced, etc.).
- A Usage-Based subscription is used for Microsoft Azure; where the cost (and revenue) is not per user or seat but based on actual consumption by the Customer.
A License Change Log record is generated for every change in the quantity of a License or Service based subscription. The License Change Log is an audit of all the quantity changes for that subscription.
Usage Summary is a monthly summary of the consumption details against a subscription, whereas the Usage Details provide the information at a daily level.