There are some important changes coming to how Dynamics 365 F&O licenses are managed, and it’s something every business needs to be across. Microsoft is introducing a more active approach to license enforcement, with all user licenses needing to be assigned directly through the Microsoft 365 Admin Centre.
What’s happening with Microsoft’s new licensing changes?
The core of the change is: all Dynamics 365 user licenses will soon need to be correctly assigned through the Microsoft 365 Admin Centre (admin.microsoft.com). If a user tries to access a Dynamics 365 application without a valid, assigned license for that specific application, they will eventually be blocked.
Key dates are crucial and apply globally, including right here in Australia and New Zealand
- From September 1, 2025: In-Product Warnings Begin (Soft Block) Users who are accessing Dynamics 365 applications without a properly assigned license will start seeing in-app notifications or “soft warnings.” These messages will prompt them to contact their administrator to get the correct license assigned. This is your cue to act, as it gives you a heads-up before more serious action is taken.
- From November 1, 2025: Access Blocked (Hard Enforcement) This is the critical deadline. From this date onwards, users without a valid and assigned license for the specific Dynamics 365 applications they are trying to use will lose access to those applications. This could potentially halt critical business processes if not addressed proactively.
Which Dynamics 365 applications are affected?
While the initial focus of these licence changes has been on Dynamics 365 Finance & Operations (F&O) suite, the enforcement applies broadly to several core Dynamics 365 enterprise applications that operate within the same platform.
The primary applications affected include:
- Dynamics 365 Finance
- Dynamics 365 Supply Chain Management
- Dynamics 365 Commerce
- Dynamics 365 Project Operations (when integrated with F&O)
- Dynamics 365 Human Resources
It’s important to note that this primarily affects user licenses for these applications. Licenses like “Activity” or “Team Member” will also be under closer scrutiny, ensuring users are not performing actions beyond the scope of their assigned license.
Why this matters for your business?
While these changes may sound daunting, they also present opportunities:
- Optimise Your Licensing Costs: The new enhanced reporting tools in the Power Platform Admin Centre give you crystal-clear visibility into your license usage. This means you can finally see exactly who is using what, identify any unassigned or underutilised licenses, and make informed decisions to right-size your subscriptions – potentially saving your business money.
- Streamline Administration: By centralising license assignment through the Microsoft 365 Admin Centre, management becomes more consistent across your entire Microsoft cloud environment. This can reduce administrative overhead and simplify user provisioning in the long run.
What action should you take now?
Don’t leave this to the last minute! Here are some immediate steps your business should consider:
- Audit Your Current Usage: Get a clear picture of who is using which Dynamics 365 applications and what security roles they have.
- Review License Assignments: Cross-reference your active users and their roles against your purchased Dynamics 365 licenses. Ensure everyone has the correct license assigned in the Microsoft 365 Admin Centre.
- Utilise New Reporting Tools: Familiarise yourself with the enhanced license usage reports available in the Power Platform Admin Centre.
- Plan for Communication: Be ready to communicate these changes to your internal teams, especially those who might see the “soft warning” notifications from September 1, 2025.
The clock is ticking, with the hard enforcement deadline of November 1, 2025, rapidly approaching. Getting your licensing in order now and avoid disruptions. If you need a hand making sense of these changes or getting your licensing in order, our Walkerscott experts are here to help! Get in touch today.