As your trusted Dynamics 365 partner, we want to ensure you’re fully informed and prepared for upcoming licensing changes recently revised by Microsoft.

 

You may recall that Microsoft initially announced new in-product license validation and user notification features as part of their continued investment in license transparency and governance.

 

These changes were originally expected to take effect in August 2025. However, following further evaluation and customer feedback, Microsoft has now updated the rollout timeline to provide organisations with more time to prepare.

What does this mean for you?

The key revised dates from Microsoft are:

 

  • September 1st 2025 – In-product unlicensed user notifications will begin.
  • November 1st 2025 – Enforced per-user license validation will go live. From this date, users without a valid assigned license will be prevented from accessing the affected Dynamics 365 Finance and Operations applications.

 

These updates apply to the following applications:

 

  • Dynamics 365 Finance
  • Dynamics 365 Supply Chain Management
  • Dynamics 365 Commerce
  • Dynamics 365 Project Operations
  • Dynamics 365 Human Resources

What’s changing with Dynamics 365 licenses?

Microsoft will provide enhanced license reporting across the Power Platform Admin Centre and Lifecycle Services (LCS) to help customers better align security role assignments with the new licensing enforcement.

 

To aid this, the new User Security Governance feature (USG) —arriving with version 10.0.44 (June 2025)—will provide further clarity on how assigned roles, duties, and privileges map to the different license types.

 

These updates aim to deliver more accurate, policy-aligned reporting and improve the overall user experience through clearer guidance on license dependencies.

What should you do now?

There are three steps Dynamics 365 customers should take before September 1st:

 

  1. Plan Your Upgrade to Version 10.0.44:
    Prepare for the upcoming release, which will be available in the LCS Shared Asset Library. This version provides access to USG functionality.
  2. Review Security Roles and Assignments:
    Analyse user roles and permissions within D365 to assess system usage and ensure alignment with licensing and compliance requirements – using the enhanced reporting tools when provided.
  3. Assign Licenses in the Microsoft 365 Admin Centre:
    Confirm that all D365 users have the appropriate licenses assigned through the Microsoft 365 Admin Centre to maintain access and prevent service disruption.

What happens if you do nothing?

Users who do not have a valid license assigned in the Microsoft 365 Admin Centre by the enforcement date will lose access to Dynamics 365. This may cause disruption to essential operations and business critical processes. 

We are here to support you

We recognise that licensing alignment can be complex—particularly in environments with customised security roles or large user bases. Our team is ready to support you throughout this transition. If you have questions or need help interpreting the new tools and requirements, please reach out to our Business Applications Managed Services team.

 

We are committed to ensuring you remain compliant, informed, and ready ahead of the enforcement dates.

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About the authors

Monika Reiter

Dynamics Support Consultant, Managed Services, Business Applications

Ayesha Cameron
Ayesha Cameron

Solution Cell Lead, Managed Services, Business Applications

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