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BREP and Licence reduction

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Posted on by Arkaig

I would appreciate any advice from anyone with experience on this topic. Dynamics 365 BC on prem user with perpetual licences. Downsized the team and now looking to our supplier to reduce licences and ultimately BREP annually. They point blank tell us this is not possible. I cannot believe that Microsoft do not have a mechanism in place for this. I have read on another resellers blog that there is merely a form to fill in and sign to reduce licence numbers or codeunits if we chose to reduce.

Anyone with any wisdom?

Thanks,

D

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KasparsSemjonovs 4,817 Super User 2026 Season 1 on at

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On-Prem perpetual licences cannot be downsized/decreased.
You can just stop paying BREP - if You know that You will not need to add something to the license (add-on, tables etc. or You are not planning to perform upgrade to newer version anytime soon). After several years if You need to change something after all in the license You will need to pay BREP for all the skipped years, or if they are more than 5-6 years, it is cheaper just to buy a totally new license.

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CU20061018-0 2 on at

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Yes you can permanently deactivated the licenses you dont need. thus BREP reduced . But you will have to buy them back as new if you should need them again.

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Hi @KasparsSemjonovs

sorry but you are wrong - you can downsize Perpetual license as long as you are on BREP. This is done via PartnerSource request to deactivate modules.

Kind regards,

Ernests

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Gerardo Rentería Ga... 25,547 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.How to post sales or purchase invoices via different serial numbers

Best Regards
Gerardo

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YUN ZHU 98,242 Super User 2026 Season 1 on at

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I suggest you consult Microsoft directly.

https://www.microsoft.com/en-us/dynamics-365/products/business-central

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Ben Baxter 6,827 Super User 2026 Season 1 on at

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Yes, there is a form you and your partner fill out to deactivate modules/users/objects from the license. You should first look at the License Value calculation to ensure what you are reducing will actually impact your BREP value.

This exists in the event a portion of the business is sold off and those Users/modules are no longer needed. You just need to know that this is a permanent decision. If you need those Users back in the future, you will pay full price for the User at that time.

Sounds like your partner didn't do much research, but if they are otherwise a good partner they should be able to assist you with the process.

Best Regards,

Ben Baxter

Accent Software Inc

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Sohail Ahmed 11,165 Super User 2026 Season 1 on at

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You're right to question this—it is possible to reduce BREP costs, but it comes with conditions.

With perpetual licenses, Microsoft allows reduction only at the time of BREP renewal, not mid-term. However, license reductions must be formally requested by your partner using the License Configuration form before the BREP invoice is generated.

Many partners avoid this because it reduces their annual revenue, but technically it’s supported.

✅ Tip: If your current partner refuses, consider reaching out to another authorized Microsoft CSP or partner who’s more transparent.

If this helped, please mark it as the verified answer ✅

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