Entitlement Update on Renewal
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‎04-19-2024 07:43 AM - edited ‎04-19-2024 07:44 AM
Good day,
I'm using SAM Pro with my instance version set to Tokyo. I have a Microsoft 365 entitlement that's due for renewal. After receiving the renewed license, I'm unsure whether to add a new entitlement with a new software model or update the existing one. The concern arises from a catalog item associated with this software model, where there's a price difference upon renewal.
Updating the pricing in the software model doesn't affect the pricing field in the catalog item; it only accepts the initial pricing and doesn't consider updates thereafter. However, the cost field updates every time there's a change in software model pricing. During the approval process, pricing information goes to the manager for approval, creating a challenge for the SAM team to update pricing in multiple places.
Could someone recommend the best practice here ?
Thanks.
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‎04-25-2024 12:46 PM
Hi @Community Alums,
1) Renewal: Usually, a renewal covers the same product, e.g., with different active rights, costs, etc. - it's recommended to link the new entitlement to the same software model. For M365 I would assume a PPN is available and should cover the link between the existing entitlement. Please take care of this, and for this step, do not update the software model, only link the entitlement to it.
2) Pricing: From a SAM perspective, the shown license costs (TrueUp, Savings) is the average price of all software entitlements linked to this model or overwritten by the "Overwrite License Costs". By default, the cost field.
I'm not sure whether this discussion needs to be held at all. As you said, there is the "price field", which also determines the user when ordering and therefore the cost of the service offered. In the best case, this price should cover all costs incurred (license, service, IT, ...). I see the "Costs" field as more informative for the product owner who offers a product/cat item, so that he has an insight into the corresponding costs, in our case those of a license.
Consequently, the "price" may have to be adjusted to cover any increased license costs.
Best, Dennis
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‎04-25-2024 03:26 PM
Since a subscription license is a 'term' license, it expires on the last day of subscription period. In my view, the renewal is a brand new subscription license covering a different period and I would always create a new entitlement record and link it to the same software model as the subscription which expired.