Direct Billing – Identify Microsoft 365 Pricing and Billing Management Options

Direct Billing

Direct billing is the simplest form of license acquisition—the customer organization purchases the licenses directly from the Microsoft 365 admin center.

Other programs

Though they’re no longer included as part of the MS-900 exam, there are other indirect licensing programs available to organizations.

The Open License program (which includes Open Value, Open Value Subscription, and Open License) allows customers to buy licensing through a reseller and is typically aimed atsmaller organizations (more than 5 seats and typically fewer than 500). As of the end of 2021, customers who wish to purchase via Open License will be directed to CSPs. For up-to-date changes to licensing programs, see https://www.microsoft.com/en-us/licensing.

The Microsoft Products and Services Agreement(MPSA) is a purchasing account structure designed for organizations that use product pools and groupings or bundles to determine the price of services on an as -needed basis (as opposed to the commitment structure of an EA). Organizations must have more than 250 users or devices.

The Services Provider License Agreement (SPLA) is a license structure designed for independent software vendors and service providers who want to license and host applications and services for customers.

Finally, there is the legacy Select Plus program. Select Plus is a purchasing mechanism targeted at large organizations with a number of affiliates who want to purchase as one entity. It is no longer available to commercial customers but is still available for public sector customers (government and academic organizations).

For more information on the wide variety of licensing programs available, see https://www.

microsoft.com/licensing/docs/view/Licensing-Programs.

Next, let’s pivot to how Microsoft services are paid for.

Describe the Available Billing and Bill Management Options

After customers have selected what type of licensing program to participate in and what types of licenses to acquire for their organization, they’ll need to select a way to pay for the products and services. Depending on the type of licensing program, one or more of these methods may be used:

• Credit card or bank account: Schedule a recurring credit card charge or bank account draft to pay for services. This is frequently used for direct billing scenarios, but can also apply to services acquired through CSPs.

• Invoice: An organization can receive an invoice with payment terms for Microsoft 365 services. This may apply to all pricing models and programs.

• Prepaid product key: Products and services can be purchased with a pre-paid license key at some retail locations.

• Enterprise agreement: Enterprise customers can purchase Microsoft 365 services and support directly from Microsoft through the EA contract vehicle, payable through a variety of terms and mechanisms (typically paid directly to Microsoft through invoice).

Payment detail

The frequency of these payments can be set to a monthly or yearly basis. You can learn more at https://docs.microsoft.com/en-us/office365/admin/subscriptions-and-billing/change-payment-method.