Enhancement News
June happens to be one of the busiest months for us as your Partner when it comes to renewing Microsoft Dynamics solution’s and related ISV’s enhancement plans. We would like to take this time to emphasize the importance of your enhancement renewals and ask that you please pay by the requested date that we have provided on the enhancement renewal.
Account Managers are available to answer any questions you might have about your renewal enhancement plans. One of the more frequent questions I get is “What happens if I pay my enhancement fee late?” Therefore, I wanted to take some time and explain what happens when a payment for a Microsoft Dynamics Enhancement Plan is not processed on time.
Let’s take a look at Company XYZ as an example:
Company XYZ has a System List Price (SLP) of $55,000. Their payment is due June 1, 2013.
Microsoft provides your renewal information to InterDyn BMI starting at about the 90 day mark and up until the plan is renewed or expires. InterDyn BMI provides statements, emails and phone call reminders throughout that time to you.
If payment is not received by us before the InterDyn BMI due date (provided on your statement), you will be charged a late fee of $100. If payment is not received by InterDyn BMI in time for us to process your order with Microsoft, your plan will expire.
When your Dynamics enhancement plan expires, your SLP is no longer protected and Microsoft re-calculates this amount to today’s current cost which then ultimately increases the cost of your enhancement plan every time you renew in the future. Let’s take a look at how this would work for company XYZ:
1. XYZ has a SLP of $55,000
2. They currently pay 16% Annual Enhancement ($8,800)
3. On the second day of lapsed payment that amount would now be ($13,450). (Late fee of $3K + 3% on top)
4. Microsoft has now added the late fees and a new SLP has been assigned permanently at today's current value.
5. The new SLP can’t be reduced to the $55,000, because Microsoft will take today’s value of your system and have a new SLP value.
We make it a priority to protect your System List Price and ensure you are able to continue receiving the benefits of your Dynamics enhancement plan.
We want to help you protect you investment, so please respond to our calls and emails regarding the processing of your enhancement renewal payment.