Adapting to New Licensing Requirements in Dynamics 365 Finance and Supply Chain Management
Microsoft's recent announcement regarding user license validation for Dynamics 365 Finance and Supply Chain Management applications marks a significant shift in how organizations manage their software licenses.
Updated - Oct. 2, 2025: Beginning January 15, 2026, per-user license validation will follow a staged rollout aligned to each customer’s contract anniversary or renewal date. Users will receive in-app notification 30 days before the validation month to give customers time to review and assign the correct licenses. We will follow a milestone-driven timeline:
- T-90 (90 days before anniversary or renewal date): Customers initiate anniversary preparation supported by seller/partner.
- T-30: In-app notifications will appear to alert users without assigned user licenses.
- T+15: License validation begins, giving customers a 15-day period to assign the correct user licenses
A contract anniversary date is the annual recurrence of the date on which the customer’s commercial license contract with Microsoft was signed. In some cases, this may also be the renewal date if it aligns with the end of the contract term. The contract anniversary date is important because key operational processes - such as user license validation and compliance notifications - are scheduled based on the customer’s contract anniversary date. For most people it will be your renewal date + 15 days, if you have a triennial term or a promotion, it will most likely be the anniversary date in 2026 + 15 days.
It will be mandatory for users to have an assigned license to access applications such as:
- Finance
- Finance Premium
- Supply Chain Management
- Supply Chain Management Premium
- Commerce
- Project Operations
- Human Resources
Why Is This Change Important?
Simply put, if the appropriate license is not assigned to the user, they will not be able to log into or access Dynamics 365 starting on your contract anniversary date in 2026.
This change highlights the importance of proper license management and the need for organizations to stay updated on the latest developments to ensure access to their Dynamics 365 environment. Historically, ambiguous reporting and non-enforcement have led to over-licensing or under-licensing. However, with the new detailed license usage reporting in the Power Platform admin center, administrators can now gain insights into seats available, and seats assigned, bringing clarity to the licensing landscape.
Users without assigned licenses will receive in-product notifications instructing them to contact their administrator, emphasizing the urgency of assigning licenses promptly starting 30 days before the contract anniversary date in 2026.
Reviewing the Finance and Supply Chain Management user license level overview report will ensure each user is licensed appropriately, avoiding any disruptions. Reviewing capacity will also be important as we progress through the year. Although no official announcement has been made, clients should be proactive in trying to reduce capacity, if they are over the threshold.
How Working with a Licensing Partner Can Help
Stoneridge can help you navigate this change; however, this may mean that you need to re-evaluate your licensing. Although that may seem tedious, it's an important step in ensuring effective licensing management and times of change are the perfect times to go through a licensing review.
Our FREE licensing assessment allows one of our experts to investigate your licensing for cost optimizations, compliance, and simplification tips. Here are a couple of other things we offer:
- Insights: Understand your current licensing situation clearly.
- Cost Optimization: Eligible customers could save up to 20% or more.
- Compliance Assurance: Ensure you meet Microsoft’s requirements.
- Simplified Licensing: Easily consolidate and streamline your licenses.
Partner with Stoneridge to Consolidate and Streamline License Management
Stoneridge licensing experts will help you review and consolidate your licenses so you can make better-informed decisions, manage licensing budgets, and reduce the pressure of manually tracking when each license is due for renewal.
Talk to our licensing team today to learn more!
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