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Dynamics 365 Finance & Supply Chain License Enforcement Overview

Dynamics 365 Finance & Supply Chain License Enforcement Overview

Alex MeyerFinance & Operations6 hours ago17 Views

Microsoft recently announced that they will finally start license enforcement of their Dynamics 365 Finance & Supply Chain (D365FSC) application starting this year. Let’s talk about it and what that means for you!

Disclaimer: There are a lot of changes happening in a very short amount of time, I will try and provide as much information as I understand it at this point in time. If this information changes in the future I will come back and update it. Please be sure to validate all licensing information with the latest Microsoft licensing guide and/or your Microsoft account contact.

Last updated: 4/29/2025

What is the background of license enforcement in D365FSC?

Microsoft has for a long time wanted to perform the same license enforcement they do for other business applications to D365FSC, but have been unable to do so because of the complex licensing methodologies used and the inability to correctly report on the license required for a particular user. This stems from the fact that licensing has always been based on the access a user is assigned instead of the actions a user performs.

With the announcement of the User Security Governance solution via IP acquisition late last year, Microsoft set itself up to finally be in a place to be able to provide actual reports on license requirements within the D365FSC application.

They further clarified their stance that they would like to have the Power Platform Admin Center (PPAC) to be the ‘single source of truth’ for license requirements for both Power Platform and D365FSC.

How will this impact my organization?

Starting on April 30th 2025 users who are not properly licensed will receive a ‘soft block’ informational banner like the one below:

This will turn into a ‘hard block’ on August 30th 2025 with the user no longer able to log into the D365FSC application until they are assigned the appropriate license for their security assigned.

Is there a way to disable these ‘soft notifications’ to end users?

Unfortunately, it does not appear that there is a way to disable these notifications from being generated for end users. Potentially this means support teams at organizations running D365FSC will see an increase in support tickets starting tomorrow.

Where can I find D365FSC license information in Power Platform Admin Center?

After logging into https://admin.powerplatform.microsoft.com/ navigate to Licensing -> Finance and Operations:

Note: You should see the actual license requirements, mine is showing all 0’s because of Fastpath’s partner status.

Do SysAdmins need a license?

We finally have an answer on this as the license enforcement FAQ answers this question directly:

However this opens a new question, if a company doesn’t care about compliance/security and just wants to pay the minimum amount for licensing is there anything stopping them (other than their Microsoft EULA) from purchasing the minimum seat requirement and just assigning everyone the ‘SysAdmin’ role to avoid having to pay additional licensing costs?

Does this impact external users?

This is a great question, based on the most recent Dynamics 365 licensing guide the easy answer is no. However the licensing guide is very particular on what it considers an ‘external user’. It would probably be good to review the below passage and ensure that the users you think are ‘external users’ are actually ‘external users’ according to Microsoft:

Known Issues

Probably the biggest issue I can see right now is that Microsoft has made the decision to remove the most consequential report available in the User Security Governance related to licensing and put it behind a feature flag that you have to enable and even when you do enable it, the report is now blank.

In previous versions, the ‘License Usage Summary’ report would actually show the license requirements for users, roles, duties, and privileges. I luckily have screenshots from the initial 10.43 release that show what this data actually looked like:

I recently made the decision to update my 10.43 environment to the latest version 10.0.43 (10.0.2177.83) and this report is now blank (I can also confirm that this report is blank is the initial 10.44 release as well).

First you have to enable this report via Feature Management:

And even when it is enabled, the report is coming back blank:

From my understanding, this is because the data for these reports will no longer be generated within D365FSC but will be done via Power Platform and will flow back into D365FSC for reporting. However, the data flow for this has not been set up yet which means there is no reporting data available. This is definitely something to keep an eye on.

Conclusion

This is obviously a very hot topic currently within the D365FSC space, I hope the above help to answer some of the questions but I’m sure there will be more. Feel free to reach out or comment below and I will try my best to answer them. I will also try to post any updates or changes that I see coming across in the future.

And one last thing…