operational overview

Operational Overview Slides

What this Deck Will Cover

• Tax Exemption Certificate

• Subscriptions •  Invoicing & Billing

• Customer Contract Requirements

• Payment Methods

Tax Exemption Certificate Required

• Any US-based partners located in a taxable state must submit a Tax Exemption Certificate before they start submitting orders.

• Do so by logging a case on the Partner Community: –  Case Type: Orders & Contracts –  Sub-type: Billing Dispute –  Subject: Tax Exemption Certificate

• Taxable states include: Alabama Arizona Colorado Connecticut District of Columbia Hawaii Idaho Illinois Indiana Kansas

Kentucky Louisiana Maine Massachusetts Michigan Minnesota Mississippi Michigan Minnesota Mississippi

Nebraska New Mexico New York North Dakota Ohio Pennsylvania South Carolina South Dakota Tennessee Texas

Utah Vermont Washington West Virginia Wisconsin Wyoming

ISVForce Overview

ISVForce Subscriptions & Invoicing Overview

• Month-to-Month subscription terms

•  Invoices are auto-generated upon order activation and emailed to the identified billing contact (from your Term Sheet) –  The subscriptions auto-renew monthly per customer, until Cancellation is received

–  If no Cancellation or Reduction is received, the invoice will continue for that customer

• Cancellations and Reductions must be received at least 30 days prior to the next billing date for each customer

WARNING: even if your customer is no longer using your application, invoicing from Salesforce will continue until a cancellation is received. You

are required to submit a cancellation order no matter what.

ISVForce Subscription Term: Monthly & Auto-Renewing

Start of monthly subscription

Initial Order

Eligible to cancel

DEADLINE! 30 day minimum requirement to submit for

cancellation of subscription

Establish renewal communication with customer

MAY

Start of month 2 of

subscription

Auto-Renews

JUNE

ISVForce Subscription Term: Details •  An initial order for a net new customer, once provisioned, will establish the start date of that monthly subscription

•  Once the monthly renewal date is reached your customer’s subscription will auto renew with all the licenses/products that were ordered in the previous month.

•  You are contractually required to submit a Reduction or Cancellation Service Order a minimum of 30 days prior to the anniversary date via the Channel Order Application.

–  Order will Reduce or Cancel on the anniversary date –  Reduction = Request to remove a number of licenses or product from your contract with Salesforce –  Cancellation = Request to cancel the contract in its entirety

•  It is important you build a strong renewal practice into your business processes to maintain compliance to Salesforce 30 day cancellation policy

•  For example: Communicate to your customers that they must cancel with you 45 or 60 days prior to monthly anniversary of when the subscription will be auto-renewing. This creates a buffer between your customer cancelling with you and you cancelling with Salesforce.

ISVForce Invoicing Model: Monthly Billing

5 users

Initial Order Add On Order

5/14 – 6/13 6/14 – 7/13 6/5 – 6/13

3 Users

8 Users

Total Users

7/14 – 8/13

8 users

Total Users

ISVForce Invoicing Model: Details

• Salesforce bills ISVForce partners on a monthly basis

• Salesforce delivers one invoice per customer / per month for ISVForce •  Invoices will be delivered throughout the month, based on the date the customer originally began

service.

• Salesforce will pro-rate all Add-On Orders •  If an add-on order occurs in the middle of a customer’s billing cycle you will see partial invoices as

they have been pro-rated for the days of service

ISVForce Requirements for Contracts With Customers

•  List product per your name and your branding. –  Do not describe it as the “Salesforce” app or “Force.com” app. Do not use Salesforce

branding

•  Clearly list what you charged to your customer in subscription fees –  Per User or Per Org –  Pricing must be clear in the case of an audit by Salesforce

•  List additional service fees separately –  For example: implementation fees, on-boarding fees, customer support fees

•  Your customer must have minimum one month subscription term

•  Pass auto-renewal terms along to your customer –  Customers should know they need to actively cancel with you just as you must actively

cancel with Salesforce to stop invoices.

ISVForce Payment Methods •  You will pay Salesforce by Wire Transfer on Net-30 terms

–  Instructions for wire payments will be on the invoices

•  Invoices must be paid within 30 days of receipt

•  When you reach 10 or more active customer (subscriptions), you can request approval to get monthly Account Statements –  Request Account Statements by logging a Case on the Partner Community

•  Type: Orders & Contracts •  Sub-Type: Billing Dispute •  Subject: Account Statement Request

•  Account Statements –  Sent on the 10th of each month to your Billing Contact (provided via the Term Sheet) –  A summary report listing all invoices yourreceived in the prior month –  Payment is due by the 30th of the month in which the statement was received

OEM and VAR Overview

OEM and VAR Subscriptions & Invoicing Overview

• Subscription terms are 1 year (annual subscriptions)

•  Invoices are auto-generated upon order activation and emailed to the identified billing contact –  Invoices re-occur monthly after order activation and remain monthly for the durations of the subscription term –  If no Cancellation or Reduction is received prior to renewal, the contract will automatically renew itself for

another full year

• Cancellations and Reductions must be received at least 30 days prior to the annual renewal date for each of your customers

WARNING: even if your customer is no longer using your application, invoicing from Salesforce will continue until a cancellation is received.

You are required to submit a cancellation order no matter what.

OEM and VAR Subscription Term: Annual & Auto-Renewing

Start of annual subscription

Initial Order Auto Renews

Year 2 of annual subscription

DEADLINE!

30 day minimum requirement to submit for reduction of licenses or cancellation of

subscription

Establish renewal communication with customer

OEM and VAR Subscription Term: Details •  An initial order for a net new customer, once provisioned, will establish the start date of that annual

subscription.

•  Your end customer’s subscription will auto renew on annual anniversary date with all the licenses/products that were ordered in the previous year

•  If you want to Reduce or Cancel your Service Order this must be submitted via the Channel Order Application a minimum of 30 days prior to the anniversary date

–  Order will Reduce or Cancel on the anniversary date –  Reduction = Request to remove a number of licenses or product from your contract with Salesforce –  Cancellation = Request to cancel the contract in its entirety

•  It is important you build a strong renewal practice into your business processes to maintain compliance to Salesforce 30 day cancellation policy

–  For Example: Communicate to your customers that they must cancel with you 45 or 60 days prior to annual anniversary that the subscription will be auto-renewing. This creates a buffer between your customer cancelling with you and you cancelling with Salesforce.

OEM and VAR Invoicing Model: Monthly Billing

5 users

Initial Order Add On Order

5/14 – 6/13 6/14 – 7/13 6/5 – 6/13

3 Users

8 Users

Total Users

7/14 – 8/13

8 users

Total Users

OEM and VAR Invoicing Model: Details

• Salesforce invoices OEM and VAR partners on a monthly basis

• Your initial order dictates the start of the subscription term, the annual auto-renewal date and the billing anniversary date

• Salesforce delivers one invoice per customer / per month for ISV •  Invoices will be delivered throughout the month, based on the date the customer originally began

service.

• Add-on orders will be pro-rated and are co-terminus with the auto-renewal date •  If you see partial invoices, it is likely an add-on in the middle of a customer’s billing cycle

OEM and VAR Requirements for Contracts With Customers •  List product per your name and your branding.

–  Do not describe it as the “Salesforce” app or “Force.com” app. Do not use Salesforce branding.

•  You must pass through Salesforce Service Agreement terms to your customers. –  These may be consolidated with your contract terms to customer as addendum, exhibit,

hyperlink, click-through agreement, etc. –  Customer acceptance of these terms must be recorded and retained in case of an audit by

Salesforce.

•  Clearly list what you charged to your customer in subscription fees –  (per-user or per-unit) and frequency (per-month or per-year)

•  List additional service fees separately –  For example: implementation fees, on-boarding fees, customer support fees

•  Your must have minimum one year subscription term with your customer.

•  Pass auto-renewal terms along to your customer. –  Customers should know they need to actively cancel with you just as you must actively

cancel with Salesforce to stop invoices.

OEM and VAR: What Happens at Renewal Date?

• Remember that each customer will have their own renewal date, based on when their specific agreement started

•  If you do not cancel, the contract renews for a full year and cannot be canceled until the end of the following year

•  If you submit a reduction during the initial year, the reduction will take place at the end of that year

•  If you cancel, the cancellation will take place at the end of that year

OEM and VAR: Payment Method

• US-based Partners will start on a Direct Debit payment method

–  Each invoice is paid automatically upon order activation by a debit against partner’s bank account

–  E-mails will still be sent to your Billing Contact address (from you Term Sheet) as confirmation of charges

–  Direct debit banking information, account and routing numbers, should be supplied to Salesforce securely over the phone. You will be unable to transact if this information is not recorded.

–  Please log a case via the Partner Community to initiate this call. –  Case Type: Ordrers & Contracts –  Case Sub-Type: Billing Dispute –  Subject: Direct Debit Information

OEM and VAR: Payment Method (Continued)

• Non-US Partners will start on Wire Transfer, Net 30 payment method

–  Partners can make one or more wire transfer payments across multiple customer invoices, honoring the Net 30 Term from receipt of each invoice. You may pay the invoices individually or all at once.

–  E-mails sent to your Billing Contact address (from your Data Sheet). They will contain details on where to send the wire payments in your region.

–  Partners on Direct Debit can be moved to Wire Transfer once they reach $5,000 USD or more in monthly billings. Please request approvals through your ISV AE.

Next Steps

• Follow On-Boarding Checklist

• Review all material in the Partner Community – Distribute page