What Is A True Up Agreement

(i) the company`s products. For enterprise products, the Registered Affiliate must determine the number of qualified devices and qualified users (in the case of ordering user-based licenses) at the time of the ordering period and order additional licenses for all qualified devices and qualified users that are not yet covered by existing licenses, including all online enterprise services. According to Microsoft, all devices contained in EA must be inventoried in the annual true-up process, including all servers, computers (desktops, laptops and devices) and mobile devices using licensed software from the Microsoft product list. Following a software audit, Microsoft`s standard practice is to require a controlled company to purchase licenses related to “unlicensed use” calculated within a specified time frame (usually 30 days) after receiving Microsoft`s billing request. However, for companies with enterprise agreements, it is important to take into account that their EA registrations may contain real rights that could result in the deferral of certain purchases of incremental licenses, either for an indeterminate period or until the next true-up order. The Enterprise product makes a business contract, “Enterprise.” There are several products classified as business levels – Office Professional, the Windows operating system, the corporate or basic customer access license and some Office 365 subscriptions. A customer must choose to purchase an “Enterprise” product for all its qualified users or qualified devices. You could not say, for example, that we have 10,000 devices, but let us dedicate an EA for 5,000 devices. The “additional product” covers most other products – Visio, Project, Windows Server, Exchange Server, etc.

– and these products can be purchased à la carte. You will receive unlimited user rights for enterprise products and additional products upon completion of the enterprise agreement. However, online services are products for which you only have temporary user rights for the duration of the contract. You will never receive permanent licenses for an online service product. Microsoft is naturally moving to a subscription model for many of its products, especially for Microsoft 365 products. This seems clear, indicating that for the first two years of your agreement, the true agreement is due at least 30 days before the anniversary of the agreement. The third year of true-up? Within 30 days of the expiry date. Note the use of the word “in” 30 days before the expiration date versus “by.” Microsoft frequently (in error) uses this latter interpretation and informs customers of this statement, which means that the report is due 30 days before the contract expires.

While it is reasonable for Microsoft to understand last year`s growth in order to prepare a customer price sheet for the renewal contract, your obligation is simply to submit before the contract expires. Online bookings are the method used to add incremental users to online products, with the requirement that orders be sent monthly (to activate incremental users on the Microsoft portal).