Updated May 23, 2025: In-product notifications and user subscription license (USL) validation has been amended for customers in FY25 Q4, FY26 Q1 renewals.
Today, we’re introducing updates that will help centralize user license management and provide clarity for administrators. Starting April 30th, administrators will have access to license usage reporting that shows seats available and seats assigned. Starting September 1st, users that have not yet been assigned a license will start to see an in-product notification asking them to contact their administrator to request license assignment. Beginning November 1, 2025, users will require an assigned license to access the Dynamics 365 Finance and Operations applications. We are giving customers time to prepare with tools and training to support any action needed. For users that already have licenses assigned, there will be no disruption, and no action needed from their administrator.
Key Dates and Actions for Simplified License Management
Starting April 30, 2025, we will introduce enhanced license reporting in the Power Platform admin center, offering comprehensive insights into license usage across all security roles.
Starting September 1, 2025, users who do not meet license requirements will receive proactive notifications directly within the Dynamics 365 application, instructing them to request proper licensing through their administrator. This improvement supports your efforts to maintain precise control and ensures compliance while reducing administrative overhead.
Beginning November 1, 2025, all Dynamics 365 customers will be required to assign user licenses directly through the Microsoft 365 admin center for the following applications:
- Finance
- Finance Premium
- Supply Chain Management
- Supply Chain Management Premium
- Commerce
- Project Operations (in Dynamics 365 Finance and Operations)
- Human Resources
This shift toward centralized license assignment underscores our commitment to simplifying administrative processes, providing greater visibility and governance, and enhancing the overall licensing experience across the Microsoft Cloud.
To maintain continuous access and avoid disruptions in the future, we recommend organizations proactively review and assign licenses in advance. Users without assigned licenses will no longer have access to these applications and will instead receive prompts to request the appropriate licenses from their administrator.
Preparing for a Smooth Transition
As we approach this important milestone, we encourage you to:
- Review the “Finance and Operations User license level overview report” in the Power Platform admin center.
- Begin assigning your Dynamics 365 licenses in the Microsoft 365 admin center today.
Taking these steps will help ensure a smooth transition before November 1, 2025, and position your organization for success in managing licenses across Microsoft Cloud solutions.
Take control of your license reporting:
Now, administrators can better understand and govern licenses with the improved license reporting capabilities available in both the Power Platform admin center as well as in Dynamics Lifecycle Services (LCS). We have also introduced in-product reporting to provide further control.
1) In the Power Platform admin center
Within Power Platform admin center (PPAC), administrators will have access to comprehensive license reporting for required seats. This report also reflects the number of assigned seats from the Microsoft 365 admin center and provides recommended actions to help remediate assignment gaps.
2) In Dynamics Lifecycle Services (LCS)
Similarly, in LCS we will be directly integrating the same reporting information from PPAC as part of our admin unification efforts. This ensures that administrators from both the customer and their system implementation partner will have access to the same reporting details and actions as administrators in PPAC.
3) In-product reporting
User Security Governance is also now in Public Preview with Dynamics 365 version 10.0.43, providing administrators with even greater visibility and control. General availability for these features is targeted for June 6, 2025 with version 10.0.44. Customers can opt into these features through Feature Management and test them in sandbox environments ahead of broad deployment.
Learn More
Ready to get started with a centralized license assignment? Learn how to assign Dynamics 365 licenses through the Microsoft 365 admin center or explore the recent FastTrack Tech Talk | User Security Governance Overview.
Updated May 15: in-product notifications have been pushed to September 1, 2025, and license assignment to November 1, 2025, so customers have sufficient time to be able to assign licenses in admin.microsoft.com.
Updated May 23, 2025: Microsoft is providing customers with active renewals of Dynamics 365 finance and operations apps in FY25 Q4 or FY26 Q1 (present date until 9/30/2025) with a 12-month grace period from their renewal date before in product notification(s) and per-user subscription license (USL) assignment validation(s) will occur.
Microsoft remains dedicated to empowering your organization with the tools and resources needed to thrive in today’s complex business environment. These license management improvements are just one more way we’re working to simplify your experience and help you focus on what matters most—delivering value to your customers and driving operational excellence.
