Dynamics 365 Business Central licenses not being imported when updating from Microsoft 365

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Posted on by Jason Yeung

Hi,

I created a few users in Microsoft 365 and applied the "Dynamic 365 Business Central for IWs" license to them. When I try to add them to our Business Central Sandbox (via the "Update users from Microsoft 365" command), it would add the users, but it won't apply the licenses to their accounts. I tried a few times, and it would detect the licenses' presence in their accounts:

However when I click on the Finish button, none of the users are getting updated:

I was wondering why are the licenses not being applied to their accounts?

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YUN ZHU 93,654 Super User 2025 Season 2 on at

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RE: Dynamics 365 Business Central licenses not being imported when updating from Microsoft 365

Hi, May I ask where did you see that the user does not have a license? The page below?

More details:

Manage users and licenses in online tenants

https://learn.microsoft.com/en-us/dynamics365/business-central/ui-how-users-permissions#manage-users-and-licenses-in-online-tenants

Hope this helps.

Thanks.

ZHU

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S.Kawamura 1,530 on at

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RE: Dynamics 365 Business Central licenses not being imported when updating from Microsoft 365

Hi,

What does "It won't apply the licenses to their accounts." mean?

In the image you attached, it appears that user I is assigned a BC license. Are you saying that the license is applied but user I cannot use BC?
If so, check the permissions assigned to the license.

Go to License Configuration page, then clicking on the target license in the page,

You will be able to see the default permissions assigned to your license.

I hope this helps you.

S.Kawamura

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Jason Yeung 6 on at

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RE: Dynamics 365 Business Central licenses not being imported when updating from Microsoft 365

Hi Zhu,

Below is the screenshot of one of the users I'm trying to add. She has the "Dynamics 365 Business Central for IWs" license applied (I've cropped out her name for security:

I tried to import this user to Business Central a few times, but each time, although it would detect this license on her account, it would not add it to her account in Business Central:

Below are the details of this user:

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pankaj.k 994 on at

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RE: Dynamics 365 Business Central licenses not being imported when updating from Microsoft 365

Hi Jason Yeung

Some time Its take time to update in business central.

Please check the below link for more Detail:

Create Users According to Licenses https://learn.microsoft.com/en-us/dynamics365/business-central/ui-how-users-permissions
Add users and assign licenses https://learn.microsoft.com/en-us/microsoft-365/admin/add-users/add-users?view=o365-worldwide
https://learn.microsoft.com/en-us/microsoft-365/enterprise/add-several-users-at-the-same-time?view=o365-worldwide
Assign Microsoft 365 licenses to users https://learn.microsoft.com/en-us/microsoft-365/admin/manage/assign-licenses-to-users?view=o365-worldwide

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Jason Yeung 6 on at

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RE: Dynamics 365 Business Central licenses not being imported when updating from Microsoft 365

Hi Pankaj,

thanks for the info. I was wondering if you know roughly how long this would take? I added the users with licenses to Microsoft 365 maybe a couple of weeks ago (the new employee started about 2 weeks ago). I noticed that this employee wasn't the only person who didn't have the license applied and also some have the Business Central Essential license instead of IWs (these were not created / assigned by me, so I don't know when these would be created).

Jason

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YUN ZHU 93,654 Super User 2025 Season 2 on at

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RE: Dynamics 365 Business Central licenses not being imported when updating from Microsoft 365

Hi, I think that's the problem.

Microsoft does not allow two kinds of licenses in the same environment, such as Essential and Premium. Your environment already includes the Essential (just no quantity) of the paid license in this environment, so the IWs license is invalid.
You can consult Microsoft, or suggest reapplying for a new trial environment.

Hope this helps.

Thanks.

ZHU

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Jason Yeung 6 on at

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RE: Dynamics 365 Business Central licenses not being imported when updating from Microsoft 365

Hi Zhu,

thanks for the info. It appears that way. I have another BC environment (on a different tenant). This tenant only has the IWs licenses. I imported the users from Microsoft 365 the same way and the licenses were imported right away.

Sincerely,

Jason

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