Azure Billing Reconciliation
How to reconcile Azure consumption in Gradient. Several paths exist; this article explains which to use and when.
Table of Contents
Overview: Three Paths to Azure Reconciliation
Azure is tricky to reconcile because it's consumption-based: the quantity is tied to actual usage (compute hours, storage, bandwidth), not seat counts. This means Azure reconciliation looks a bit different from reconciling fixed-seat products like Microsoft 365.
Today, Gradient supports three ways to bring Azure data into reconciliation:
- Pax8 arrears integration if you purchase Azure through Pax8 (most common for MSPs).
- CSV import from Microsoft Partner Center if you bill Microsoft direct or want to cross-check your distributor invoice.
- Via a connected Liongard integration if you already have Liongard in place.
Why no direct Azure integration? A direct Azure usage API integration is on our roadmap but is not yet available. If you'd like a direct integration, let us know by connecting with us at support@meetgradient.com
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Path 1: Pax8 Arrears (Recommended for Pax8 Customers)
If you resell Azure through Pax8, the Pax8 arrears integration is the simplest path. Azure usage is pulled directly from your Pax8 invoice as it's generated each month.
Prerequisites
- Connect the Pax8 integration through Data Sources > Integrations. See Pax8.
- Link your companies to the correct Resource Groups in Pax8. This is the critical step. Without Resource Group linking, Pax8 doesn't tell Gradient which usage belongs to which customer, and you'll see a quantity of 1 instead of the real usage. Pax8's own guide is the best reference: How to Map Usage in Pax8.
- In Gradient's service mapping, map to the Arrears version of the Azure product. Pax8 exposes both a regular and an Arrears version; the Arrears version is the one that includes usage-based data.
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Azure arrears timing: Pax8 doesn't publish arrears billing data until mid-month, after your invoice is generated. If you check Azure data in Gradient on the 1st or 2nd of the month and see nothing, this is expected. Check back after about the 5th or 6th. A sync day of the 5th or 6th is a common configuration for exactly this reason. |
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Path 2: CSV Import from Partner Center
If you bill Microsoft directly, or if you want to cross-check Pax8's numbers against what Microsoft Partner Center reports, you can import a CSV of your Azure usage:
- Log in to Microsoft Partner Center and navigate to Billing > Billing Overview.
- Click the invoice date for the prior month.
- Under Report Download, click the Invoice recon - billed option to download the CSV. It may take a few minutes for the report to generate.
- Go to Reports (NCE) on the left-hand panel. Once processing finishes, download the file.
- In Gradient, import the file via File Importing.
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When to use CSV over Pax8 arrears: Use CSV import when you need to reconcile against Microsoft's invoice directly, when you don't purchase Azure through Pax8, or when you want to cross-check what your distributor is reporting. |
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Path 3: Via Liongard
If you utilize Liongard and have it connected to Gradient, Azure usage can come through that integration instead. Liongard scrapes Azure directly and often provides more granular visibility than either Pax8 or a CSV import.
For details on connecting Liongard, see the Liongard integration guide.
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Which Path is Right for You?
Use this decision guide:
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Your setup |
Recommended path |
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Azure purchased through Pax8, simple billing structure |
Path 1: Pax8 arrears |
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Direct CSP with Microsoft (no distributor) |
Path 2: CSV import |
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Pax8 customer but want to cross-check invoices monthly |
Path 1 as primary, occasional Path 2 for audit |
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Already have Liongard in place |
Path 3 via Liongard |
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Complex Azure billing (many subscriptions, varied products) |
Start with Path 1 or 2, escalate to support if granularity is insufficient |
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Common Gotchas
Quantity shows as 1 for every customer
This is the most common issue. It means the customer isn't linked to a Resource Group in Pax8, so Pax8 can't associate the usage with a specific customer and returns a default quantity. Complete the Resource Group linking in Pax8 and run a fresh sync.
Quantities look tiny or don't match Pax8 invoice
Gradient shows Azure consumption as reported by Pax8 for the billing cycle. If the numbers on your reconciliation card don't match your invoice, first confirm that you're looking at the same billing period (Pax8 arrears cycles can differ from your Gradient view), and that you've mapped to the Arrears version of the service, not the standard one.
Azure usage appears but only for some customers
This usually means Resource Group linking is complete for some customers but not others. In Pax8, check each Azure subscription and confirm it's associated with the correct company.
I want to bill Azure at a flat rate instead of metered
Gradient reconciles based on what the vendor reports. If you bill a flat managed Azure fee regardless of actual usage, you can tag those agreements in Gradient and handle Azure manually, using the vendor usage data only as a sanity check rather than a direct quantity push.