Starting 30 August 2025, Microsoft is introducing a critical update to how licences are managed in Dynamics 365 Finance & Operations (F&O). This change will require all users to have assigned licences in the Microsoft 365 Admin Centre in order to maintain access to their F&O applications.
For many organisations, this marks a significant shift. Licence assignment is moving out of traditional environments and into a more centralised, streamlined platform. With enforcement just a few months away, now is the time to start preparing.
The Shift Towards Centralised Licence Management
Microsoft is moving Dynamics 365 F&O in line with other Microsoft 365 services, bringing all licence management under a single umbrella. This update simplifies administrative processes, offers clearer visibility of who’s using what, and reduces the risk of compliance issues.
From 30 April 2025, users will begin receiving in-product notifications if they’re not properly licenced. Then, on 30 August 2025, those without assigned licences in the Microsoft 365 Admin Centre will be blocked from logging into their apps.
In addition to the changes in how licences are assigned, reporting will also be shifting. The Power Platform Admin Centre will become the new hub for licence insights, replacing older and often inconsistent reporting systems.
Why Microsoft Is Making This Change
The goal behind the enforcement update is clear: streamline licence administration, improve consistency across services, and make it easier for IT teams to manage their environments. By consolidating licensing into the Microsoft 365 Admin Centre, Microsoft is eliminating guesswork and manual effort, while also helping organisations strengthen their compliance posture.
For finance and operations teams, this means greater clarity around user access and entitlement and fewer surprises during audits.
What You Should Be Doing Now
With just a few months until the enforcement begins, the first step is to review your current user licence assignments. You’ll need to ensure every user who needs access to Dynamics 365 F&O has a valid licence allocated in the Microsoft 365 Admin Centre.
Next, familiarise yourself with the Power Platform Admin Centre. This will be your new go-to resource for licence tracking, giving you up-to-date visibility into consumption and availability.
Finally, ensure your internal teams are fully aware of what’s changing. The transition will be smoother if everyone understands the why, the how, and—most importantly—the when.
Key Milestones to Keep in Mind
Microsoft announced the upcoming changes on 28 March 2025. In-product notifications has begun rolling out on 30 April 2025. And enforcement officially starts on 30 August 2025, when unlicenced users will be denied access.
These dates matter. They’re your markers for planning, communication, and execution. Waiting until the last minute could result in access disruptions, especially for teams who rely on F&O daily.
Tools and Resources to Support Your Transition
To make things easier, we’ve created a Licensing Prep Checklist. It walks you through the key steps to take now and helps ensure you won’t run into roadblocks later.
And if you’re unsure about where to start or how these changes will affect your environment, our team is here to help. We offer tailored consultations to support you through this transition, from licence audits to step-by-step implementation.
Stay Ahead of the Change
Enforcement may still be a few months away, but acting now means you avoid stress later. Take advantage of the resources available, engage your IT teams early, and get ahead of the transition.
The changes to Dynamics 365 F&O licensing are part of Microsoft’s broader vision for a more consistent and simplified experience. Embracing it now positions your organisation to benefit from a more streamlined, compliant, and user-friendly licensing model.
Not sure where to start? Let’s work through it together.
