Increase in Enhancement Plan (EP/BREP) Fees as of October 1, 2024
As we informed you in previous communications, starting October 1, 2024, the annual fees for the Enhancement Plan (EP) for Microsoft Dynamics on‑premise solutions, including Navision and Business Central, will increase from 18% to 19% of the Protected List Price (PLP).
This increase will affect both renewals and new sales.
Contracting a Long‑Term Enhancement Plan (BREP)
Customers who sign a two‑ or three‑year Enhancement Plan (EP) will keep the original percentage for the entire duration of the plan. The percentage is determined by the date on which the EP quote or order is created.
Examples of Savings with the Enhancement Plan
- Example 1: If a customer requests a three‑year EP through a quote created on September 1, 2024, the 18% rate will apply for the entire duration of the plan.
- Example 2: If the customer requests the same plan through an offer created in October 2024, the rate will be 19% for the full duration of the plan.
This creates an opportunity for customers to secure lower rates if they act before October 1.
Enhancement Plan Renewal Options: Which One Is Best for You?
Renewal orders can be placed within 120 days after the expiration date of the current active plan. This means that plans with an expiration date up to January 31, 2025 are eligible to be quoted with the 18% Enhancement Plan rate if the quote is created before the increase becomes effective on October 1, 2024.
Early Renewal of the Enhancement Plan
You can extend an Enhancement Plan up to 120 days before its expiration date. For example, if the renewal date is November 15, 2024, you can request the renewal starting on July 18, 2024. The renewal will activate on the original renewal date and will appear as “pending” in the PartnerSource Business Center.
Renewal Options
You have the option to renew for 1, 2, or 3 years. You can choose to pay upfront or, in the case of multi‑year plans, in annual installments.
Monitoring Prices and Margins in Enhancement Plans (BREP)
Since prices are rising and margins are shifting, it’s important to monitor these variables and adjust your strategies accordingly.
Payment Options for Multi‑Year Plans
- Upfront Payment:
- Advantages: You lock in the 18% rate for the entire duration of the plan.
- Consideration: Ideal if you prefer a fixed, predictable rate.
- Annual Payment:
- Advantages: You continue benefiting from the 18% rate throughout the 2‑ or 3‑year plan.
- Consideration: Any additional order under a plan renewed at an 18% Enhancement Plan rate will also be calculated at 18%, even if the additional order is placed after October 1. This gives you added flexibility.
Read also: Important information for Navision users — The risks of not being protected
Do you want to avoid BREP increases in your ERP?
Evaluate the migration to Business Central in the cloud
It is essential to assess how this price increase will impact your operations and make informed decisions. The cloud offers significant advantages, and it’s important to consider migrating to Business Central in the cloud as part of your business strategy.
In summary, the price update is a clear indication that the cloud is the path forward. Don’t risk the integrity of your data or the efficiency of your business. Now is the time to consider migrating to Dynamics 365 Business Central in the cloud.
Contact our team for more details and personalized assistance.