What is license reconciliation for MSPs?

License reconciliation is the process of matching vendor license counts (e.g. Microsoft 365 CSP) with your PSA contracts and your billing invoices to ensure every seat sold is billed and every billed seat is delivered.

How often should an MSP reconcile licenses?

At minimum monthly, before invoicing. ProgressIn syncs every 6 hours so deltas are caught the same day they appear.

Which vendors does ProgressIn reconcile?

Microsoft 365 CSP, Google Workspace, Adobe Creative Cloud, Microsoft Defender, Dropbox Business, Zoom and more — with new SKUs added regularly.

License Reconciliation for MSPs

License reconciliation is the process of comparing the licenses you actually buy from vendors with what your PSA says you sold and what you billed the customer. ProgressIn automates this for Managed Service Providers across Microsoft 365 CSP, Google Workspace, Adobe and more.

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What it is

License reconciliation for MSPs means continuously aligning vendor seat counts (Microsoft CSP, Google Workspace, Adobe) with PSA contract quantities and invoiced amounts. When the three sources disagree, you are either underbilling, overbilling, or paying for licenses no one uses.

Why it matters

Most MSPs leak 3–8% of recurring revenue from unbilled or under-billed licenses.
Vendor true-ups happen monthly; manual reconciliation cannot keep up.
Auditors and finance teams require evidence of seat-to-invoice accuracy.
Underbilled customers compound silently — a missed seat in Jan costs you 12x by year end.

Common problems

Seats added in Microsoft Partner Center never reach the PSA contract.
PSA contract quantities not updated after onboarding new users.
Pricing tiers change but invoices keep using the old SKU.
White-labeled SKUs are invisible to vendor-side dashboards.
Trial conversions silently become paid seats with no billing trigger.

How ProgressIn solves it

Connect Microsoft CSP, Google Workspace and your PSA via OAuth in under 5 minutes.
ProgressIn pulls vendor seats, PSA contract quantities and billing records every 6 hours.
Our 3-way reconciliation engine flags every delta with the dollar impact.
Export underbilled seats directly into your next invoice run.

Benefits

Recover 3–8% of monthly recurring revenue
Cut reconciliation time from days to minutes
Audit-ready seat-to-invoice trail
Spot churn risk via license drop-off

Frequently asked questions

What is license reconciliation for MSPs?: License reconciliation is the process of matching vendor license counts (e.g. Microsoft 365 CSP) with your PSA contracts and your billing invoices to ensure every seat sold is billed and every billed seat is delivered.
How often should an MSP reconcile licenses?: At minimum monthly, before invoicing. ProgressIn syncs every 6 hours so deltas are caught the same day they appear.
Which vendors does ProgressIn reconcile?: Microsoft 365 CSP, Google Workspace, Adobe Creative Cloud, Microsoft Defender, Dropbox Business, Zoom and more — with new SKUs added regularly.