Overview

Work365 provides end-to-end management of Azure Reserved Instances (ARIs).

The Reserved Instance model in Work365 (Recon) is built around Microsoft's reconciliation file as the authoritative billing source, ensuring that what partners bill their customers accurately reflects what Microsoft charges.

How Reserved Instances Are Displayed

Reserved Instances appear in Work365 as a distinct subscription type: Recon. This separates them from standard license-based and usage-based subscriptions and reflects the different billing model that applies to ARIs.

Each Reserved Instance record displays the following fields:

• Reservation Order ID — The unique Microsoft identifier for the reservation order.
• Azure Subscription ID — The Azure subscription the reservation is associated with.
• Term — The commitment term (e.g., 1 Year, 3 Years).
• Region — The Azure region where the reservation applies.
• SKU — The product SKU for the reserved resource type.
• Quantity — The number of reserved units. This is shown for reference and is sourced from Microsoft Partner Center inventory — it is not used as the basis for billing calculations.
• Pricing Strategy / Markup — The pricing configuration applied to the Reserved Instance for billing purposes.

The quantity and inventory data shown in Work 365 reflect what is returned by Microsoft's Partner Center API at the time of the last sync. This data is informational; the billing figures are derived from Microsoft's reconciliation files, not from inventory counts.

How Reserved Instance Sync Works

Work365 uses a dedicated ReservedInstanceSyncService to keep ARI inventory up to date. This service runs independently of the main subscription synchronization pipeline, ensuring that ARI sync does not interfere with standard license-based subscription processing.

How Reserved Instance Billing Works

Billing for Reserved Instances in Work 365 is driven entirely by Microsoft Partner Reconciliation Files, not by inventory state or subscription records. The reconciliation file is the single source of billing truth.

Reconciliation-driven billing model:

• Work 365 processes the Microsoft Partner Reconciliation File for each billing period.
• Positive reconciliation lines generate a charge to the customer.
• Negative reconciliation lines generate a credit to the customer (for example, when a reservation is cancelled or transferred out).

This model automatically handles the following scenarios without manual intervention:

• Expired reservations — When a reservation expires and no longer appears as a positive line in the reconciliation file, billing stops automatically.
• Transferred-out reservations — When a reservation is transferred out of a partner's tenant, negative lines in the reconciliation file generate the appropriate credit.
• Transferred-in reservations — When a reservation is transferred into a partner's tenant, positive lines in the reconciliation file trigger billing from the point of transfer.

Because billing is tied to the reconciliation file rather than to inventory state, there is no risk of billing for reservations that are no longer active, and no need to manually close or deactivate ARI records when a reservation lapses.