Dynamics 365 F&SCM licensing changes: 8 things you need to know

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.

However, they also require a few concrete actions on your part to help your organization stay ahead:

1. Improved license reporting available from 30 April 2025

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.

• Enhanced visibility helps prevent over-licensing and enables more effective cost control. Find your enhanced license reporting here: Power Platform admin center

2. In-app alerts for unlicensed users

Users without a valid license will see a notification inside the application prompting them to contact IT for access.

• This reduces support requests and enables faster issue resolution, resulting in a smoother experience for everyone.

3. License assignment must be done via the Microsoft 365 admin center by 30 August 2025 (NEW DATE November 1, 2025)

Users not assigned licenses through the Microsoft 365 admin portal will lose access to key apps, including Finance, Supply Chain Management, and HR.

• License management for Finance and Supply Chain Management will be aligned with the rest of the Microsoft Cloud Suite, such as Microsoft 365 and the other Dynamics 365 applications. This will result in more centralized and structured license management. You can assign user licenses directly here: Microsoft 365 admin center.

"License management shouldn’t be a guessing game. With the upcoming changes, now’s the perfect time to review your Dynamics 365 setup—what you’re using, paying for, and where you could optimize."

4. License Services (LCS) Integration

License data and recommendations will now appear for customers and partners in Dynamics Lifecycle Services.

• This fosters transparency between your organization and your implementation or support partner.

5. Governance tools for user security

New features will help administrators align user roles with licenses, flag excess permissions, and manage costs more effectively.

• Cleaner role assignments and improved license efficiency will benefit you, especially in large organizations. You can find it here: User Security Governance.

6. No disruption for already licensed users

Users with the correct licenses will not experience any changes or interruptions.
If you're compliant today, you're in a strong position—no need to rush.

7. Transition period to prepare

Enforcement begins in late August, allowing you time to audit and optimize your setup.

• Now is the time to review roles, access rights, and licensing to ensure alignment.

8. Training and resources available

Microsoft supports these changes with guidance materials, reporting features, and help resources.

• You won’t have to figure it out alone. There’s help to make the shift smooth.

What to do next

1. Review your current license assignments.
2. Use the Power Platform admin center to assess your license usage.
3. Familiarize yourself with the M365 Admin Center, in case you are not already.
4. Collaborate with your Microsoft Partner or Lifecycle Services team to stay compliant and to ensure zero business disruption.

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.

"The new licensing updates are a real opportunity—not just to stay compliant, but to take control. We’re here to guide you through the transition and help you turn license visibility into business value." 

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.