• (619) 483-4180
  • info@avantiico.com
Facebook-f Linkedin Instagram Youtube
Avantiico Microsoft Business Applications Solutions Partner. Microsoft Inner Circle Partner

License Enforcement for Dynamics 365 F&SCM (F&O) Users: Updates & Next Steps

Starting in 2025, Microsoft will have stricter Dynamics 365 license compliance enforcement for Finance & Operations (Finance & Supply Chain Management) — ending the previous lack of enforcement where customers were able to have far more users than licensed.

Picture of Morten Loegstrup

Morten Loegstrup

Why Is This Important?

On August 30, 2025, Microsoft will enforce stricter license compliance for Dynamics 365 F&O (now F&SCM). Historically, many organizations have operated with more users than officially licensed due to the lack of enforcement. Now, many users without proper licenses will lose access to critical applications, potentially disrupting financial operations, supply chain workflows, and other business processes. 

Beyond access disruptions, organizations face significant financial and compliance risks. Unaddressed license gaps, for example, can lead to unexpected costs during Enterprise Agreement or Cloud Solution Provider renewals, and non-compliance may trigger Microsoft audits, resulting in backdated charges or contractual penalties. Not to mention having unlicensed users with system access, which can create governance vulnerabilities, increasing audit exposure and IT burdens as enforcement deadlines approach.

Disruptions for Unlicensed Users: After August 30, 2025, any employee without an assigned license will be locked out of critical F&SCM applications — halting workflows in finance, procurement, inventory, and more.

Cost & Compliance Risks: Unplanned license purchases and non-compliance can lead to unexpected costs, backdated charges, or legal repercussions during EA/CSP renewals.

Security & Governance Concerns: Unlicensed users with lingering system access create security gaps and audit vulnerabilities, while last-minute license scrambling strains IT teams.

Operational Downtime: Sudden loss of access for key personnel could delay month-end closes, shipments, or financial reporting.

Key Implementation Timeline

On April 30, 2025, administrators will gain access to enhanced license usage reporting through the Microsoft 365 admin center. These reports will clearly identify available and assigned seats while notifying unlicensed users to request proper access through their administrators.

The mandatory license assignment phase begins August 30, 2025. From this date forward, all active users must have properly assigned licenses for:

– Dynamics 365 Finance and Finance Premium

– Dynamics 365 Supply Chain Management and SCM Premium

– Dynamics 365 Commerce, Project Operations, and Human Resources

For organizations requiring assistance, Avantiico offers a fixed-fee license and database analysis service with a 7-day turnaround. This assessment provides clear visibility into your current compliance status along with actionable recommendations to keep your workflows from bottlenecking. You can also attend our upcoming security and licensing webinar, meant to keep you prepared for these changes:

– Dynamics 365 Licensing Review Service

– Upcoming Security & Licensing Webinar

How You Can Prepare

To ensure a smooth transition, you and your organization can:

1. Conduct a comprehensive license audit to identify all active users and compare against current license allocations

2. Clean up unnecessary or redundant user accounts to optimize license usage

3. Align license assignments with upcoming contract renewals to avoid unexpected costs

License Compliance Assessment & Remediation Services

To help organizations navigate this transition smoothly, Avantiico offers a fixed-fee Dynamics 365 F&SCM license and database analysis with 7-day delivery. Our assessment includes:

– Comprehensive audit of all user access against current license allocations

– Identification of compliance gaps with prioritized remediation steps

–  Optimization recommendations to align with your EA or CSP renewal

– Documentation of potential risk exposure and cost projections

Sample deliverables include:

– License analysis reports showing compliance status and cleanup opportunities

–  Database audit results revealing unauthorized access instances

–  Actionable roadmap for achieving full compliance before enforcement

For organizations preparing for renewal cycles or concerned about compliance exposure, our assessment delivers clarity and actionable intelligence.

Request a licensing assessment to clear any confusion, or register for our upcoming licensing webinar to stay informed of these upcoming changes.

Share Post

Explore more content

Recent Posts

Share Post

Request Microsoft Dynamics 365 demo

Start Conversation

Book a free meeting and let us have a look at your opportunities with Microsoft Solutions

Team working on presentation

Request a free Dynamics 365 demo

Discover how Avantiico helps you improve business processes, provide customers with a seamless experience and transform the way you do business.