Beware: Why Microsoft 365 Pay-as-you-go cost management can be misleading

Microsoft promotes its Microsoft 365 Pay-as-you-go (PAYG) services for Microsoft 365 Copilot Chat and SharePoint Agents. Admins should configure billing policies in the Microsoft 365 Admin Center so that users without a Microsoft 365 Copilot license can use these agents.

For testing purposes, I configured both PAYG services in my tenant. Notice the information about cost management.

PAYG billing services in the Microsoft 365 admin center
PAYG billing services in the Microsoft 365 admin center

If you open cost management, the admin center redirects to Billing > Cost Management, or admin.cloud.microsoft/?#/CostManagement.
My tenant has a billing position for this month.

Cost Management

I ordered free Audio Conferencing licenses. Fine and valid for this month.

Cost Management for June, but no PAYG costs
Cost Management for June, but no PAYG costs

At the same time, Microsoft promotes the new Copilot message consumption report, which requires an active PAYG billing policy.

From MC1069563:
To help you manage metered consumption costs for Microsoft 365 Copilot Chat, we will introduce a new Message consumption usage report in the Microsoft 365 admin center. The new report will give you visibility into billed messages associated with your Microsoft 365 Copilot pay-as-you-go billing policies and includes total messages consumed, cumulative and daily time series, and messages per user, per agent, and per agent-user pair. The new report will roll out in preview. During the preview stage, the report will display a maximum of 30 days of message consumption history. Usage information from prior to May 3, 2025 will not be available in the report.

The message consumption report is in the M365 Admin Center > Reports > Usage > Microsoft 365 Copilot > Message consumption.

I conducted some tests with Prompt Coach and Writing Coach Agents for business purposes and to confirm that metered usage applies to them.
As I described in March, the Coach agents support metered usage for users without a Microsoft 365 Copilot license.

Read:  Metered usage for Copilot Coach agents

The message consumption report shows that I consumed 48 messages in June, which was my test with Prompt and Writing Coach.

Metered usage tests from June
Metered usage tests from June

Now I’m wondering: if I consumed those messages, why wouldn’t they be included in the M365 Cost Management report?

  • At first, I thought maybe these were unbilled messages, but that doesn’t match the results from my tests in March.
  • Next, I checked the Cost Management section of the connected Azure subscription. It shows the charges for my Coach agent tests. Remember the scope and the tag “m365copilotchat” for later.
PAYG cost management report in Azure
PAYG cost management report in Azure

As usual, Azure Cost Management remains quite opaque regarding PAYG services, and Microsoft still does not provide a user-friendly PAYG cost report.

In January, I wrote about how admins can get details for PAYG services.

Read:  How to get cost and usage reports for Microsoft 365 Pay-as-you-go billing in Azure?

I checked the costs as described.

Cost Management from Azure Subscription
Cost Management from Azure Subscription

There are two notable findings:

  • Coach Agents use Microsoft Syntex billing, which is part of SharePoint Premium and also applies to SharePoint Agents.
  • The messages from Coach Agents were billed under the “Agents in SharePoint” billing, even though the Microsoft 365 Copilot Chat billing policy is applied. I had two interactions with each agent, totaling four successful interactions with 12 messages each (4 × 12 messages).

Agents in SharePoint
The number of messages used: $0.01/message
Each interaction includes a question and an answer. A successful interaction uses 12 messages.

  • For customers in Switzerland, Microsoft charges CHF 0.008955 per message, which is approximately USD 0.01 as documented.

For me, it’s clear that the Cost Management overview in the Microsoft 365 Admin Center does not include costs from PAYG billing services, even though Microsoft recommends using it. From my perspective, it seems Microsoft forgot to update a filter used in the cost management view.

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Tobias Asböck

Tobias is a Senior System Engineer with around ten years of professional experience with Microsoft 365 products such as SharePoint Online, SharePoint Premium, OneDrive for Business, Teams Collaboration, Entra ID, Information Protection, Universal Print, and Microsoft 365 Licensing. He also has 15+ years of experience planning, administering, and operating SharePoint Server environments. Tobias is a PowerShell Scripter with certifications for Microsoft 365 products. In his spare time, Tobias is busy with updates in the Microsoft 365 world or on the road with his road bike and other sports activities. If you have additional questions, please contact me via LinkedIn or [email protected].

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