MC1186367 – M365 Change Digest

One-line summary

A new PAYG experience in Microsoft 365 Admin Center launches Jan 15, 2026, centralizing billing for Backup and Copilot; departmental billing for Backup arrives Q1 2026.

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Details

Summary

Microsoft 365 Admin Center introduces a new pay-as-you-go experience for managing Backup and Copilot billing starting January 15, 2026. Admins can create billing policies, set budgets, and view usage under the Billing node. Migration details for existing Backup customers will be announced later. No immediate action required.

Body (from Message Center)

Updated December 17, 2025: We have updated the document link. Thank you for your patience.

[Introduction]

We’re introducing a new pay-as-you-go (PAYG) experience in the Microsoft 365 Admin Center (MAC). This update provides a centralized way to manage metered services such as Microsoft 365 Backup and Copilot under the Billing node.

[When this will happen:]

General Availability:

Available to new Microsoft 365 Backup and all Copilot customers starting January 15, 2026 (previously December 15, 2025).
Migration path for existing Backup customers will be announced later.

[How this affects your organization:]

Who is affected: Admins in Worldwide and GCC environments managing Microsoft 365 Backup and Copilot PAYG services.

What will happen:

A new PAYG page will appear under the Billing node in MAC.
Admins can create and manage billing policies directly in MAC.
Services can be linked to billing policies, with support for departmental billing. Note: departmental billing for Backup customers will become available in Q1 2026.
Budgets can be set, and notifications triggered when thresholds are met.
Usage and spending can be viewed at the billing policy level.
Subscriptions and resource groups can be created in MAC without navigating to Azure.
PAYG setup for other services remains under Org Settings > PAYG until transitioned.
Additional PAYG-enabled services will be added to the Billing node over time. Until then, the PAYG setup for other products (besides Backup) will continue to remain under Org Settings > PAYG.

[What you can do to prepare:]

No action is required.

Admins may decide to:

Review the new PAYG page under Billing in MAC.
Monitor announcements for migration timelines for existing Backup customers.
Refer to Microsoft documentation for guidance on billing policies and budget notifications.

Learn more: Set up or disconnect pay-as-you-go billing for services in new billing node | Microsoft Learn (will be updated before rollout)

[Compliance considerations:]

No compliance considerations identified, review as appropriate for your organization.

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      "Summary": "Microsoft 365 Admin Center introduces a new pay-as-you-go experience for managing Backup and Copilot billing starting January 15, 2026. Admins can create billing policies, set budgets, and view usage under the Billing node. Migration details for existing Backup customers will be announced later. No immediate action required."
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