Azure cost does not match distributor invoice

Azure cost does not match distributor invoice

Azure cost does not match distributor invoice

This article explains why the Azure cost or sell price shown in Sync 365 may not match your distributor invoice exactly, and what to check before contacting support.

This is most common for Indirect CSP partners because Sync 365 may need to estimate your Azure cost using Microsoft retail pricing and your configured vendor discount profile.

When this article applies

Use this article when:

  • The Azure cost in Sync 365 is different from your distributor invoice.
  • Your Azure margin or markup looks wrong.
  • The customer sell price is not what you expected.
  • Reservations, software, marketplace, or credits are missing or different.
  • You are reviewing a billing period before approving it to your PSA.

Direct CSP versus Indirect CSP

Direct CSP

Direct CSP partners normally receive billing information directly from Microsoft. Sync 365 can usually compare against Microsoft billing data more directly, depending on the billing period and data availability.

Indirect CSP

Indirect CSP partners buy through a distributor. Microsoft does not always provide the distributor-specific cost to Sync 365, so Sync 365 may estimate your cost using Microsoft retail pricing and your configured vendor discount profile.

If the vendor discount is wrong or missing, the estimated cost and margin can look wrong.

Most common cause: Vendor Discount Profile

For Indirect CSP partners, check your Vendor Discount Profile first.

The Vendor Discount Profile represents the discount you receive from your distributor below Microsoft retail pricing.

Example:

Item Amount
Microsoft retail price £110
Distributor cost £100
Vendor discount 9.09%

Formula:

Discount % = ((RRP - Cost) ÷ RRP) × 100

In this example, the Vendor Discount Profile should be set to 9.09%.

What happens if no vendor discount is set?

If no vendor discount profile is configured, Sync 365 may assume your cost is the same as Microsoft retail pricing.

This can make your margin appear lower than expected or make the calculated cost look different from your distributor invoice.

Other reasons values may not match

1. Tax is included on the distributor invoice

Your distributor invoice may include tax, while Sync 365 may be comparing or posting pre-tax values.

Check whether the distributor value you are comparing is tax-inclusive or tax-exclusive.

2. Credits or adjustments are included

Distributor invoices may include credits, refunds, corrections, or adjustments from previous periods.

These may not always appear in the same way as the current month consumption line items in Sync 365.

3. Billing period mismatch

Make sure you are comparing the same billing period in both systems.

Azure billing can be confusing when invoices, usage periods, and approval months do not line up exactly.

4. Finalised versus unbilled consumption

Unbilled or estimated consumption may change before Microsoft finalises the billing period.

Use finalised billed consumption where available when reconciling against a distributor invoice.

5. Currency or rounding differences

Currency conversion, decimal rounding, and distributor invoice formatting can cause small differences.

Small rounding differences are normal. Large differences usually mean a setting, discount, tax treatment, or included item needs review.

6. Reservations and savings plans

Reserved Instances and Savings Plans may need separate configuration.

For Indirect CSP partners, check that reserved instances have cost and sell prices configured and that they are included in billing when required.

7. Software or marketplace items

Software, perpetual software, marketplace, and third-party items may be treated differently depending on your CSP type and Sync 365 settings.

Check whether these item types are included or excluded in the Azure company configuration.

Checklist: what to review

  1. Confirm whether the customer is Direct CSP or Indirect CSP.
  2. Confirm you are comparing the same billing period.
  3. Check whether your distributor invoice value includes tax.
  4. Check whether credits or adjustments are included.
  5. Check the assigned Vendor Discount Profile.
  6. Confirm the vendor discount percentage is correct.
  7. Check the Azure billing profile and customer markup.
  8. Review all line items in the billing period.
  9. Check reservations, savings plans, software, and marketplace items.
  10. Recalculate the billing period after changing discount or markup settings.

When to recalculate

Recalculate the billing period if you changed:

  • Vendor Discount Profile
  • Azure billing profile
  • Customer markup
  • Reserved instance cost or sell price
  • Software or marketplace include/exclude settings

After recalculating, review the billing period again before approving it to the PSA.

When to contact support

Contact support if you have checked the items above and still cannot explain the difference.

Include the following:

  • Azure company name
  • Billing period
  • Direct or Indirect CSP
  • Distributor name, if Indirect CSP
  • Expected amount and Sync 365 amount
  • Whether the distributor amount includes tax
  • A copy or screenshot of the distributor invoice or relevant line items
  • Screenshots of the Sync 365 billing period and Azure billing profile

Related articles

  • Azure billing reconciliation breakdown
  • Azure Automated Billing - Initial Setup (Indirect CSP)
  • Azure Automated Billing - Billing Periods and Approvals
  • Azure Automated Billing - Managing Reserved Instances
  • Common Azure CSV Mappings
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