Cloud licensing not working due to mismatch in PUC when newly generated legacy/offline license with add-on not applied before renewal

Bug

Summary

This affects customers on legacy or offline license, when Sales perform a seat add-on to the subscription too close to the renewal date and the customer does not apply the new license to the instance. Upon renewal and instance sync, the Previous User Count (PUC) on the instance and cloud licensing end up not matching up.

As there is no way to tweak the PUC for cloud licensing, they cannot apply cloud activation code. We have to switch the customer back to legacy license. This is a system limitation keeping customers from moving from legacy licensing to cloud licensing. For offline licensing, I believe a new offline license need to be manually generated to address this issue.

Steps to reproduce

  1. Have an instance with 10 users.
  2. Apply a license file for 10 users that expires in 1 day.
  3. Perform a subscription add-on for 20 users, this should generate a new license, don't apply this license.
  4. Renew the customer for 30 users.
  5. Wait for the subscription to expire.
  6. After the renewal sync, apply cloud licensing, it should fail because of the PUC mismatch. The instance's PUC = 10 and the cloud licensing PUC = 30.

What is the current bug behavior?

Cloud licensing not accepted due to PUC mismatch when customer does not add the new license with seats add-on before renewal.

What is the expected correct behavior?

Cloud licensing is accepted despite customer not applying the new license with seats add-on before renewal.

Relevant logs and/or screenshots

Workarounds

Fall back to legacy license.

Reported examples

  1. https://gitlab.zendesk.com/agent/tickets/386086

Support Priority Score: (1, 2, 0, 3, 3, 3, 3, 3, 3, 2, 3) => 26

Edited by Tom Houston