Dynamics 365 Licensing Changes Coming in 2025: What You Need to Know
- sabineknoll3
- Sep 3
- 2 min read
Licence alert: From 1 November 2025 – No more access without a licence!
The schedule for Microsoft's licensing requirements has been finalised! Starting on 1 November 2025, every user who logs into Dynamics 365 FSCM must be assigned a licence that authorises them to use the application.
Which Dynamics 365 licences are affected?
The following licences will be required for access:
• Dynamics 365 Finance
• Dynamics 365 Finance Premium
• Dynamics 365 Supply Chain Management
• Dynamics 365 Supply Chain Management Premium
• Dynamics 365 Commerce
• Dynamics 365 Project Operations
• Dynamics 365 Human Resources
Until now, licensing for Dynamics 365 Finance and Supply Chain Management did not involve any technical checks to determine whether users had been assigned a licence in the system. This meant that companies were only required to maintain a sufficient number of licences in their tenant and, if necessary, demonstrate during an audit that all users were covered by these licences.
Important: The fact is that Microsoft will be cracking down from 1 November 2025. Anyone who does not have a valid user licence will be technically denied access!
(Source: Confizmicrosoft.comLICENSEWARE.)
Even before that, namely from 1 September 2025, users without the necessary licence will be notified via an information message.
Who needs which licence?
Since June, the complete ‘User Security Governance feature’ has been available with version 10.0.44 of Dynamics 365 FSCM. This tool helps organisations determine the required licences for roles and authorisation elements, making it easier to stay compliant.
Are there any exceptions?
Yes. For now, the following are exempt from personal licence requirements:
On-premises, sandbox, and development systems
System administrators with admin roles in Dynamics 365 Finance and SCM
Even so, Microsoft strongly advises system administrators to take licence governance seriously, as compliance will be closely monitored.
Possible consequences of non-compliance
Access failures: Critical business processes such as financial statements, warehouse management or payroll accounting can come to a standstill
Unplanned costs: Emergency purchases or additional licensing can lead to high additional costs misconfigurations of roles exacerbate the problem
Audit risks: Microsoft could not only charge for licences retroactively, but also impose penalties under Enterprise Agreements
Operational disruptions: IT teams will be overwhelmed with urgent follow-up work and support requests – especially from November 2025 onwards
Recommended measures – ‘Take action now!’
To avoid disruption and ensure compliance, Microsoft recommends the following steps:
action | Description |
Use licence reporting | Ensure access to reports in the Power Platform Admin Centre (PPAC) and LCS to identify user status and licence. |
Check & optimise safety rollers | Find out which roles trigger licensing obligations and clean up duplicate roles. |
Assign licences in a targeted manner | Assign basic vs. attach licences according to role requirements. Team member licences optional for lightweight users. |
Plan your budget & optimise costs | Plan licence purchases early – use annual billing if necessary to reduce costs (monthly premium surcharges). |
Interdisciplinary control | Involve IT, finance, HR and licensing managers in the coordination process. Compliance is not just the responsibility of IT! |
Utilise external expertise | Consult partners or experts for audits, licence optimisation and governance. |
Strategic roadmap: Key dates to remember
Ensure business continuity, control costs and proactively manage compliance. Your strategic roadmap to get there:
August 2025: Start now! Use dashboard data, review roles and users, plan licences. Contact partners for support!
September 2025: Closely monitor the warning phase – every hint counts!
1 November 2025: Without a valid licence, it's ‘access denied’.
Final Thoughts
The new Dynamics 365 licensing enforcement represents a significant shift for businesses. While it may add complexity, organisations that start early will not only avoid penalties but also optimise costs and ensure business continuity.
👉 Don’t wait until the last minute—start reviewing roles, licences, and compliance processes now to stay ahead of Microsoft’s new requirements.
How Everware Can Help
At Everware , we specialise in Dynamics 365 consulting, licensing strategy, and compliance management. Our experts can help you:
Audit and analyse your current user roles and licences
Optimise costs by aligning roles with the right licence types
Build a compliance roadmap to avoid disruptions and penalties
Provide ongoing governance and support for smooth operations
📩 Get in touch with Everware today to ensure your organisation is fully prepared for Microsoft’s 2025 licensing changes. Together, we’ll help you stay compliant, control costs, and keep your business running without interruptions.
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