Microsoft 365 Fundamentals MS-900 Practice Question
Under the New Commerce Experience (NCE) and when your organization buys through a Microsoft Customer Agreement (MCA), when can you change the billing frequency of an existing Microsoft 365 subscription from monthly to annual without altering the term length?
At the subscription's renewal, when the current commitment term ends.
Immediately; the new frequency is applied on the next invoice.
At the start of the next billing cycle (the following month).
You cannot change billing frequency; you must buy a new subscription instead.
For modern Microsoft 365 purchasing models, a billing-frequency change by itself cannot be applied during the active commitment term. Administrators can schedule the change, but it is processed only at the subscription's renewal date. Immediate changes are possible only when the term is also extended (for example, from monthly term to annual term). Therefore, the earliest point to switch from monthly to annual billing on an annual term subscription is at renewal; all other options are unsupported.
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Microsoft 365 Fundamentals MS-900
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