Upcoming Licensing Changes for Dynamics 365 F&O: What You Need to Know
The way Microsoft Dynamics 365 Finance & Operations licenses are managed is about to change… significantly. Microsoft’s new licensing enforcement and validation rules are coming very soon, and it’s critical for customers to understand how they will be impacted. Let’s dive into the details.
What’s Changing?
Historically, licenses for Dynamics 365 were loosely managed – new users could be added without a license, and former employees often remained active. To tighten this process, Microsoft is rolling out a change requiring explicit license assignment via the Microsoft 365 Admin Center, bringing Dynamics 365 Finance & Operations in line with how other Microsoft applications are managed.
Key Rollout Dates
These changes will be rolled out in two phases:
- Phase 1 – September 1st: Users without assigned licenses will begin seeing in-product warnings.
- Phase 2 – November 1st: Users without assigned licenses will be blocked from accessing the system entirely.
In product warnings users will see beginning on September 1st:
Why This Matters
The implications for business operations are significant. License enforcement will be based not just on security roles but on entry points, meaning what users actually do in the system. This adds complexity when it comes to assigning the correct license type. Organizations will need a deeper understanding of how each user interacts with the system to stay compliant.
Recommendations from Ellipse Solutions
Below we’ll provide several proactive steps to help organizations prepare for the transition:
- Upgrade to Version 10.0.44
This version includes new reporting features that may help clarify your organization’s licensing needs, although the accuracy of these reports is still being evaluated.
- Review Your User Base
Create a comprehensive list of users, including their roles and job duties. This will help ensure that each user has the appropriate license and identify any inactive or duplicate accounts.
- Begin Assigning Licenses in the Admin Center
Start assigning licenses now, ahead of the November 1st enforcement date. This not only helps you stay ahead of the curve but also provides visibility into your overall license inventory.
- Communicate with End Users
As warnings start to appear in the system, it’s important to keep users informed. Reassure them that IT is managing the process and that the changes are part of Microsoft’s phased rollout.
- Conduct a License Assessment
We strongly recommend conducting a licensing assessment to ensure compliance and uncover potential cost savings. This involves aligning user needs with the appropriate license types based on the Microsoft user guide and available privileges.
Need Help with Licensing Changes? Ellipse Solutions Can Assist
Ellipse Solutions has deep experience in Microsoft licensing and regularly conducts assessments for customers every six months. Our team can guide you through:
- Understanding user entry points
- Aligning roles and privileges
- Identifying the most cost-effective licensing options
If you’d like support with your licensing strategy, check out our D365 Licensing Assurance Program, which helps users ensure compliance, uncover cost savings, and align licenses to how your business truly operates.
With these upcoming changes, taking a proactive approach to license management is crucial. Whether you need help with an assessment or just want a second opinion on your licensing strategy, Ellipse Solutions is here to help!
EXTRA: Check out this video from our very own Bill Davies to learn a little bit more about these upcoming changes –