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3 min read • Jul 02, 2025
Microsoft is rolling out significant updates to license management for its Dynamics 365 Finance and Supply Chain Management applications. These updates streamline administration, increase transparency, and strengthen compliance.
Effective May 23, 2025: Customers with active renewals of Dynamics 365 Finance and Operations apps in FY25 Q4 or FY26 Q1 (i.e., from now until September 30, 2025) will receive a 12-month grace period from their renewal date. During this grace period, in-product notifications and per-user subscription license (USL) assignment validations will not be enforced.
Admins will receive detailed insights into license usage through the Power Platform admin center. You’ll be able to monitor seats, roles, and user assignments.
Users without a valid license will see a notification inside the application prompting them to contact IT for access.
License data and recommendations will now appear for customers and partners in Dynamics Lifecycle Services.
New features will help administrators align user roles with licenses, flag excess permissions, and manage costs more effectively.
Users with the correct licenses will not experience any changes or interruptions.
Enforcement begins in late August, allowing you time to audit and optimize your setup.
Microsoft supports these changes with guidance materials, reporting features, and help resources.
These changes focus on enhancing clarity, promoting accountability, and improving cost control. With some preparation, you can simplify complexity and even uncover opportunities to reduce costs.
For further information read the Microsoft announcement: Simplifying License Management for Dynamics 365.
If you have questions or need a second opinion on your license portfolio, you are welcome to contact us. We are happy to help you navigate the Microsoft licensing space and maximize your licenses.
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