Microsoft has announced changes to the management of licenses for Dynamics 365 Enterprise Resource Planning (ERP) applications.
Starting April 30, 2025, enhanced license reporting will be available in the Power Platform Admin Center, showing license usage across all security roles (find more below). Users who do not meet license requirements will receive in-app notifications within the Dynamics 365 application, prompting them to request proper licensing from their administrator.
From August 30, 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
To ensure continuous access and avoid disruptions, we recommend that you proactively review and assign licenses in advance. Users without assigned licenses will lose access to these applications and will receive prompts to request the appropriate licenses from their administrator.
How to prepare for August 30, 2025?
To ensure a smooth transition:
- Review the “Finance and Operations User license level overview report” in the Power Platform Admin Center: https://admin.powerplatform.microsoft.com/billing/licenses/financeAndOperations/overview.
- Begin assigning your Dynamics 365 licenses in the Microsoft 365 Admin Center: https://admin.microsoft.com/.
License Reporting changes
Power Platform Admin Center (PPAC)
Within the PPAC, administrators now 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 address any assignment gaps.
Dynamics Lifecycle Services (LCS)
In the Dynamics Lifecycle Services (LCS) portal, the same reporting information as in PPAC becomes available, as part of Microsoft’s administration unification efforts. This ensures that both customer administrators and their system implementation partners have access to the same reporting details and actions.
In-Product Reporting
User Security Governance empowers organizations to apply precise role management, advanced audit capabilities, and comprehensive license optimization tools. It is currently available in Public Preview with Dynamics 365 version 10.0.43, providing administrators with enhanced visibility and control. General availability for these features is targeted for July 2025 with version 10.0.44. Customers can enable these features through “Feature Management” and test them in sandbox environments to prepare for a wider rollout.
More Information
Announcement: https://www.microsoft.com/en-us/dynamics-365/blog/it-professional/2025/03/28/simplifying-license-management-dynamics-365/.
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