The Work 365 Dynamics version 4.8 update is a specific set of features that enable automation and functionality around the April 2025 price changes introduced by Microsoft that create differentiated pricing between the various commitment terms and their ability to bill on a monthly frequency. I.e., Annual commitment with monthly billing frequency is now a 5% higher price than Annual commitment on the Annual Billing Frequency.

This section will describe the changes that have been made in version 4.8 to accommodate these prices.

The problem

Since its inception, Work 365 Dynamics Version has maintained a tightly knit integration with Microsoft's Dynamics 365 Sales Enterprise suite. In order to integrate subscription pricing with the opportunity, quoting, and sales order functions of Sales Enterprise, Work 365 uses the product catalog and price list infrastructure established by Microsoft. There is a limitation to the price list functionality in Sales Enterprise that on any given price list, users can only add a single price per product per unit. However, with the price change on Annual-Monthly and Triennial-Monthly products, we are in a position where we need to support multiple prices per product per commitment term.

The Solution

To resolve this conflict between the need to support multiple prices per commitment term, and the limitation of one price list item per product per unit, Work 365 Dynamics Version 4.8 introduces changes to the Units to support having distinct units for a commitment term based on the different billing frequencies.

To accomplish this, a field has been added to the Unit to select the Billing Frequency. During the upgrade to 4.8, the Annual and Triennial options will be automatically added to the Subscriptions unit group while leaving the existing units in place and not editing them. The base unit of the Subscriptions unit group, which should represent a Monthly unit, will be modified during the upgrade process to assign the Monthly billing frequency, as that is the only valid selection. Note that during the upgrade process, the name will not be modified to "Monthly-Monthly" though for consistency across the unit names, users can manually change the name at any time.

Who does this change impact

Primarily, this change will impact Microsoft Direct-Bill partners. For Direct-Bill CSP organizations, Microsoft provides the same Product Id and SKU Id for all the configuration options of a product. For instance, the Monthly-Monthly, Annual-Monthly, and Annual-Annual configurations of Microsoft 365 Business Premium will all share the same Product and Sku Id (CFQ7TTC0LCHC:0002). Under the hood, these 3 configurations are differentiated in Microsoft's product identification by appending the short code for both the commitment term and the billing frequency, in that order, to the Product Id and Sku Id:

• CFQ7TTC0LCHC:0002:P1M:P1M - Monthly-Monthly
• CFQ7TTC0LCHC:0002:P1Y:P1M - Annual-Monthly
• CFQ7TTC0LCHC:0002:P1Y:P1Y - Annual-Annual

As all three of these will be grouped as the same product by their Product Id and SKU Id, we have the need for multiple price list items to represent the options.

In the case of many indirect resellers, your Provider (Distributor) will use entirely different SKUs for the different combinations of Commitment Term and Billing Frequency. In this case, your price list will already support the differentiated pricing between billing frequencies of the same commitment term; one price per product per unit isn't an issue if your Annual-Annual is a different product in the catalog from your Annual-Monthly. For those customers, the changes in version 4.8 won't be as applicable. For the full list of changes in version 4.8, please review the documentation in our change log to see if you would like any of the other minor changes in that version that are unrelated to the Microsoft Price Change.

Lastly, for those users who do not resell Microsoft licenses, but rather use Work 365 to manage other forms of recurring revenue such as software sales for a proprietary offering, these changes will have a minimal impact, but you are nonetheless encouraged to view the change logs for the full list of changes in version 4.8.

The following pages will provide sequential instructions for organizations upgrading to Work 365 Dynamics Version 4.8 from previous versions.