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Small and medium business | Business Central, N...
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D365 BC Device license

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Hi,
 
Recently encountered an issue after trying to set up a device license for a customer.
It seems that it isn't possible to assign this license to the security group (through Entra, M365 admin center) without an Entra P1 license.
 
I logged this 'issue' for some clarification because it isn't mentioned in Licensing in Business Central - Business Central | Microsoft Learn
Then I found out that this is a requirement for 'group-based licensing': What is group-based licensing - Microsoft Entra | Microsoft Learn.
 
But, group-based licensing also has the requirement of having as many licenses as assigned users:
For any groups assigned a license, you must also have a license for each unique member. While you don't have to assign each member of the group a license, you must have at least enough licenses to include all of the members. For example, if you have 1,000 unique members who are part of licensed groups in your tenant, you must have at least 1,000 licenses to meet the licensing agreement.
This is contrary to how device licenses 'should' work, I think:
You can add as many users to the Dynamics 365 Business Central Device Users group as you need. However, the number of devices that users can simultaneously sign in to is defined by the number of purchased device licenses.
Yet, when assigning more users than there are licenses to the group, the users that exceed the amount of licenses show an error on license page of that user that the 'inherited device license' exceeds the available amount. This might be purely visual, is in line with the requirements of group-based licensing.
 
The D365 license guide also doesn't mention the requirement of an Entra P1 license to use/assign device licenses.
 
It seems that Device licenses need to follow 2 different sets of 'requirements', both of the Device licenses itself and group-based licensing.
 
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  • Suggested answer
    DAnny3211 Profile Picture
    11,201 on at
    D365 BC Device license

    Hello,

    Thank you for raising this important point regarding Device license assignment in Dynamics 365 Business Central.

    You're correct in observing that group-based licensing in Microsoft Entra (formerly Azure AD) introduces additional requirements that may not be explicitly documented in the D365 licensing guide, particularly when it comes to Device licenses.

    Key Clarifications:

    1. Device License Behavior
      Device licenses are designed to allow multiple users to access Business Central from a shared device, with the limitation being on concurrent usage, not the number of assigned users. This model is ideal for scenarios like retail or warehouse environments.

    2. Group-Based Licensing Requirements
      When using group-based license assignment, Microsoft Entra requires that:

      • The number of licenses available must match or exceed the number of unique users in the group.
      • An Entra ID P1 or P2 license is required to enable group-based license assignment.

      This model does not align well with the intended flexibility of Device licenses, as it enforces a per-user license count, even when the license type is device-based.

    3. Recommended Workaround
      To avoid this conflict, consider assigning Device licenses directly to the device object or individual users (if applicable), rather than using group-based assignment. This bypasses the Entra P1 requirement and avoids the mismatch in license logic.

    4. Documentation Gap
      As you've noted, the current Microsoft licensing documentation does not clearly state that Entra P1 is required for assigning Device licenses via groups. It would be advisable to raise this through your Microsoft partner or support channel for clarification and potential documentation feedback.

    If this response helps clarify the issue, please consider marking it as accepted so it may assist others encountering similar licensing challenges.

    Best regards.

  • KasparsSemjonovs Profile Picture
    4,511 Super User 2025 Season 2 on at
    D365 BC Device license
    Just to understand better - what kind of Devices are You talking about?
  • Sohail Ahmed Profile Picture
    10,958 Super User 2025 Season 2 on at
    D365 BC Device license

    Solution for D365 BC Device License Assignment Issue:

     

    Root Problem: Device licenses require Entra ID P1 for group-based assignment, but this isn't documented in BC licensing guides.

     

    Current Requirements:

     

    1. Entra P1 license needed for group-based licensing

    2. Device license count = simultaneous device access (not user count)

    3. Group members can exceed device licenses purchased


    4.  
     

    Workarounds:

     

    1. Manual Assignment (No Entra P1 needed):

     

    • Assign device licenses directly to users in M365 Admin Center

    • Skip security group assignment

    • More administrative overhead but works


    •  
     

    2. Hybrid Approach:

     

    • Use Entra P1 trial (30 days) to set up groups

    • Switch to manual assignment after trial


    •  
     

    3. Alternative Licensing:

     

    • Consider BC Team Member licenses instead

    • May be more cost-effective than Entra P1 + Device licenses


    •  
     

    4. Contact Microsoft:

     

    • Request clarification on licensing requirements

    • Push for updated documentation


    •  
     

    Microsoft Documentation Gap: Device license guides should mention Entra P1 requirement for group assignment.

     

    Recommendation: Use manual assignment to avoid Entra P1 costs unless you need P1 for other features.

     

    Mark below checkbox to make this answer Verified if it helps you.

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