Creating and Managing Non-Recurring Items (NRIs)

Key Concepts

• Non-Recurring Item (NRI): A product or service sold as a one-time transaction, not part of a recurring billing cycle.
• Billing Contract: An agreement outlining the billing terms between the provider and the customer, which can include both recurring and non-recurring items.
• NRI Billing Configuration: Settings within Work 365 that determine how and when NRIs are billed.

How It Works

Work 365 manages NRIs through a structured process that includes creation, configuration, and billing.

Creating Non-Recurring Items

1. Search for the Product:
   1. Navigate to the product catalog and search for the desired non-recurring item.
   2. For instructions on creating a non-recurring product in the product catalog, refer to the Product Catalog Documentation.
2. Define NRI Details:
   1. Name: Automatically copied from the product name.
   2. Friendly Name: Automatically copied from the product name.
   3. Billing Contract: Select the customer's non-recurring or recurring billing contract.
   4. Product Class: Varies depending on the product (e.g., Azure Reserved Instance would be classified as Product Resale).
   5. Currency: Specify the currency.
   6. Unit: Define the sales unit.
   7. Is Taxable: Indicate if the item is taxable on the invoice.
   8. Quantity: Enter the number of units.
   9. Unit Cost: Specify the cost price per unit.
   10. Unit Selling Price: Specify the selling price per unit.
   11. Revenue: Calculated as selling price multiplied by quantity.
   12. Gross Margin: The difference between the selling price and cost price.
3. Additional Attributes:
   1. Provisioning Status: Managed based on the type of provider associated with the NRI.
   2. Effective Date: Start of the term.
   3. Segment: Specify the vertical segment.
   4. Purchase Type: Varies depending on the product (e.g., Reserved Instance for Azure RI).
   5. Scope: Single or Shared.
   6. Subscription: Search for the customer’s existing Microsoft Azure subscription, if applicable.
   7. Provider: Provider provisioning the item.
   8. Provider Part Number: Product ID from the provider price list.
   9. Provider Order ID: Reference ID from the provider.
   10. Expiry Date: End of term for term-based items.
   11. Credit Hold: Indicate if the account is on credit hold. See Work 365 Account Credit Hold for more information.

Billing for Non-Recurring Items

Billing for NRIs can be managed through the configuration setting under Invoicing called 'NRI Billing'. This setting provides the following options:

1. Bill at Contract Cycle:
   1. NRIs added to a recurring billing contract will be invoiced during the next invoicing cycle of the billing contract or through a change log invoice if the billing contract frequency is annual or quarterly.
   2. Example: For a monthly billing contract starting on January 1, 2023, if an NRI is created on January 17, 2023, it will be billed on the next invoicing cycle, i.e., February 2, 2023 (assuming the contract policy is Advanced).
2. Bill Immediately:
   1. This option allows NRIs to be billed immediately without waiting for a billing cycle.
   2. Work 365's invoicing job runs daily. If this option is selected, the system will check for any existing uninvoiced NRIs and create an invoice against the associated billing contract.

Use Cases

• One-Time Product Sales: Selling a product or service that is not part of a recurring subscription, such as a one-time consulting fee or a standalone software license.
• Special Projects: Billing for unique projects or services that fall outside regular billing contracts.
• Event-Based Billing: Charging customers for events, workshops, or training sessions that occur infrequently.

Better Practices

• Accurate Data Entry: Ensure all fields are correctly populated when creating NRIs to prevent billing errors.
• Regular Review: Periodically review NRIs and their billing statuses to ensure timely invoicing.
• Configure Billing Settings: Set the 'NRI Billing' configuration according to your organization's billing policies to automate the invoicing process effectively