What You Should Do Now
How D365 Users Can Prepare for Microsoft’s New License Enforcement
Did you know? Microsoft is rolling out a major change to how licenses are managed in Dynamics 365 Finance & Operations. If you're an existing user, it's time to take action.
Starting November 1, Microsoft will strictly enforce role-based licensing, meaning users without the correct license assignments will be completely locked out of the system. This isn’t just a policy update—it’s a fundamental shift in how access is granted and managed across your organization.
Here’s what you need to know and how to prepare.
What’s Changing?
Role-Based Licensing: Every object, menu item, and action in D365 F&O now maps to a specific license. Your users’ roles must align with the correct license type (Finance, SCM, Commerce, HR, etc.).
Soft Block (Started Sept 1): Unlicensed users may see warning banners.
Hard Block (Starts Nov 1): Unlicensed users will be denied access entirely.
Deprecated Reports: Legacy license reports in LCS and Dynamics are no longer supported.
New Tools: Microsoft has introduced new governance features and reporting tools in the Power Platform Admin Center.
- 1
Audit Your Current License Usage
Use the Power Platform Admin Center to:
- View assigned vs. available licenses
- Identify compliance gaps
- Monitor license consumption
- 2
Test Role Changes in UAT
Before pushing any role updates to production:
- Test in your UAT environment
- Use the new User Security Governance tools
- Avoid accidental license upgrades that could lock out users
- 3
Optimize for Cost Savings
- Review roles for unnecessary license uplifts
- Remove menu items that trigger higher license tiers
- Reassign users to lower-cost licenses where possible
- 4
Manage Licenses Proactively
- Assign licenses to new users before their start date
- Remove licenses from deactivated users
- Monitor changes in metadata that may affect license requirements
- 5
Understand Special Cases
- System Admins typically don’t need licenses
- External users performing business functions do
- Service accounts may require licenses if assigned standard roles
Tools & Resources to Help
- Power Platform Admin Center: Your new hub for license management
- User Security Governance: Build roles from the ground up using task recorder and building blocks
- HSO’s License Readiness Program: Includes compliance checks, optimization, training, and implementation support
Final Tip:
Don’t Wait Until November
If you’re not compliant by November 1, users will lose access to D365 F&O. This is your opportunity to not only stay compliant but also optimize your license spend and security governance.
Need help? Watch our on-demand webinar and sign up for a free 30-minute discovery session to assess your readiness and guide your next steps.
Contact your account manager or reach out to HSO directly to get started.