Microsoft is rolling out a major change to how Dynamics 365 Finance and Supply Chain Management (D365FSCM) licenses are validated. Until now, user access was managed on an honor system—if someone had a role assigned inside D365, it was assumed they were properly licensed.
That’s changing.
Microsoft will now validate licenses through the Microsoft 365 Admin Center. This means a user must have the correct license SKU assigned in the Admin Center. Even if their access and security roles are properly set up in D365, they won’t be able to log in unless the license assignment in the Admin Center matches the requirements.
Key Timeline
- Starting April 30, 2025, we will introduce enhanced license reporting in the Power Platform admin center, offering comprehensive insights into license usage across all security roles.
- Starting September 1, 2025, users who do not meet license requirements will receive proactive notifications directly within the Dynamics 365 application, instructing them to request proper licensing through their administrator. This improvement supports your efforts to maintain precise control and ensures compliance while reducing administrative overhead.
- Beginning November 1, 2025, all Dynamics 365 customers will be required to assign user licenses directly through the Microsoft 365 admin center.
Error Message Users Will See
As part of this change, users without a valid license will receive the following message:
“You will lose access to Dynamics 365 Finance and Operations apps on August 30, 2025 without a valid license. Contact your admin for the license immediately.”
If you’re seeing this, it means you don’t have a proper license assigned in the Microsoft 365 Admin Center—even if your D365 access appears set up correctly.
What You Should Do Now
Review your D365 users and confirm that each has the correct license assigned in the Microsoft 365 Admin Center. Don’t assume a user is licensed just because they can log in today or have the right roles inside the app. Inform your teams early to avoid disruptions.
Also: Find Savings While You’re At It
This is a perfect time to clean up over-licensing. Many users are assigned full licenses but only perform tasks that qualify for Activity or Team Member licenses. Right-sizing your licensing can free up budget ahead of your next renewal.
