Merge pull request #28848 from jkinma39/docs-editor/understand-your-invoice-1751473511

Update understand-your-invoice.md

Author: Ruchika-mittal01

microsoft-365/commerce/billing-and-payments/understand-your-invoice.md

@@ -55,6 +55,22 @@ Changes you make to an existing subscription appear on the monthly invoice aroun
 
 If you acquire multiple new subscriptions on different days within a month (excluding additions to current subscriptions), you receive separate invoices for each.
 
+> **Example using Microsoft 365 Business Premium**
+>
+> Let's say a Microsoft 365 Business Premium subscription is purchased on **May 2, 2025**.
+>  
+> **Monthly Billing**
+>
+> - **First invoice**: Received by **May 3, 2024**, covering **May 2-June 1, 2025**.
+> - **Recurring invoices**: Issued by the **3rd of each month**, starting **in June**, for that month's service.
+> - **Mid-term changes**: If the customer adds seats on **June 15th**, the prorated charge appears on an invoice with a different cadence around July 5th. These prorated changes don't appear on recurring charges invoices, but the recurring invoices will show the new seat total.
+>
+> **Annual Billing**
+>
+> - **First invoice**: Received by **May 3, 2024**, covering **May 2-June 1, 2025**.
+> - **Renewal invoice**: Issued by **May 3, 2026**, for the next annual term.
+> - **Mid-term changes**: If seats are added on **December 10, 2025**, the prorated charge appears on an invoice with a different cadence around January 5th. At renewal, the new seat total is billed for the upcoming term.
+
 > [!NOTE]
 > You can only change the billing frequency for a subscription when you buy, upgrade, or renew a subscription.