Licensing changes in Dynamics 365 Finance and Supply Chain Management - do not uderestimate them!

Microsoft has significantly changed its approach to licensing Dynamics 365 Finance and Supply Chain Management. As of January 15, 2026 — users without an assigned license will lose access to the system.

Published since: 08. 12. 2025

Inspiration

What is changing in the licensing of Dynamics 365 Finance and Supply Chain Management?

The vendor of Dynamics 365 Finance and Supply Chain Management has started displaying warnings in the system since September for users without an assigned valid license. Starting January 15, 2026, Microsoft will strictly enforce proper licensing of Dynamics 365 Finance and Supply Chain Management (formerly Dynamics 365 Finance & Operations). This means that users without a valid and assigned license will lose access to the system.

The change affects all organizations using Dynamics 365 Finance & Supply Chain Management (also previously referred to as D365 FO), regardless of size or license type. Companies are particularly at risk if they:

do not perform regular audits of assigned licenses,
use shared or technical accounts without licenses,
access the system through integration or automation processes,
lack consistent identity and access management practices.

Without careful review, key accounts may stop functioning as of January 2026, together with all dependent processes. This may lead to:

disruptions in finance, production, or logistics,
loss of access to critical data,
interruptions to business operations,
reputational and financial damage.

The change is also significant from a compliance and audit-trail perspective. With this step, Microsoft clearly signals that it expects full transparency and control over who uses the system and under which license.

New reports in the Power Platform Admin Center

To help companies prepare for the new licensing requirements, Microsoft is introducing new compliance tools in the Power Platform Admin Center.

These tools give system administrators clear reports and allow them to identify users who do not have an assigned license. The reports provide an overview of licensing status across the entire tenant.

How to prepare for the licensing changes in Dynamics 365 ERP?

Conduct a license audit – map all accounts, including technical and inactive ones.
Use the new reports in the Power Platform Admin Center to identify high-risk accounts.
Respond to system warnings starting in September 2025.
Test access scenarios, including automations and integrations.
Establish a process for regular license and access reviews.

Dynamics 365 licensing under control – with our expertise

Licensing changes to Dynamics 365 Finance and Supply Chain Management (formerly Dynamics 365 Finance & Operations), which Microsoft will introduce in January 2026, are among the most significant in the past 10 years. This is no longer just an adjustment to terms — this time, access for users without a license will be completely blocked. Companies that do not prepare for the new regime risk outages of critical systems, operational disruptions, and unexpected costs.

Are you struggling to navigate the new licensing report in the Power Platform Admin Center?
Unsure how and where to test the licensing impact of changes in security roles?
Unfamiliar with the User Security Governance toolset?
Not certain whether external users or administrator accounts must be licensed?
Unsure how to address inconsistencies in standard roles as efficiently as possible?
Having trouble understanding the rules in the D365 Licensing Guide?
Is your licensing structure suboptimal? Do the numbers in the licensing report not match your expectations?
Do you see licenses in the report that you never anticipated — and do not plan to use in the future?

If you are asking yourself similar questions and your answer is mostly YES, we are here to help. We offer support in this complex area, backed by our long-standing practical experience with security and licensing of the Dynamics 365 information system.

FAQ

Why is it necessary to review licenses in the Dynamics 365 Finance & Supply Chain Management information system now?

The new Dynamics 365 licensing model requires a valid license for all users starting in 2026. It is therefore essential to conduct a license audit now—including technical or shared accounts—to prevent outages of critical functionalities.

How to verify the licenses used in Dynamics 365?

Microsoft is introducing modernized reports in the Power Platform Admin Center (PPAC) and, where applicable, in Dynamics Lifecycle Services (LCS), which display assigned roles, licenses, and system usage. These tools improve visibility into the Dynamics 365 ERP environment, enabling efficient identification of high-risk accounts and optimization of licensing needs.

How often should a license audit be performed in the Dynamics 365 Finance & Supply Chain Management information system?

Regular review of licenses and roles in Dynamics 365—typically on a quarterly basis—helps maintain proper user assignments, reduce costs, and ensure smooth operation of Finance and Supply Chain Management processes within the ERP environment.

What are the risks for shared or technical accounts without a license in Dynamics 365?

The new licensing policy for Dynamics 365 Finance and Supply Chain Management strictly requires an assigned license for every end user—including technical or automation accounts. If overlooked, this may lead to access blocks and jeopardize operational processes in finance, logistics, and production. Proper licensing is essential for both security and audit requirements.

Can an external partner or consultant help us identify and properly configure licenses?

Yes — an experienced partner can analyze roles, access rights, and licensing needs in the Dynamics 365 ERP system. They can help optimize costs, ensure compliance with licensing rules, and support the smooth operation of D365 Finance and SCM processes.

Miroslav Švrčina

Head of Dynamics 365 Sales

DO NOT HESITATE TO
CONTACT US

Are you interested in more information or an offer for your specific situation?