How to Assign Group-based Licensing Using Microsoft 365 Admin Center

Managing licenses in a growing organization can be challenging, especially when it involves numerous users across departments. Group-based licensing in Microsoft Entra ID simplifies this process by allowing administrators to assign licenses to security groups instead of individual users. With recent updates, the Microsoft 365 admin center is now the primary interface for managing group-based licensing. This guide walks you through the process of assigning licenses to groups using the Microsoft 365 admin center.

Microsoft 365 Admin Center Now Powers License Management

License assignment through the Microsoft Entra ID admin center and Azure portal’s user interfaces is no longer supported. Administrators must use the Microsoft 365 admin center for license management. However, API and PowerShell methods remain unaffected. This transition aims to streamline license management across the Microsoft ecosystem.

Prerequisites for Group-Based Licensing

Before you start, ensure you meet the following requirements:

• You must have a License Administrator, User Administrator, or Global Administrator role in Microsoft Entra ID.
• Ensure you have enough licenses for every unique member in your security group.
• Specify the Usage location property for each user. If this isn’t set, the user inherits the location of the directory.

How to Assign Licenses to Groups Using the License Page?

Follow these steps to assign licenses to a group in the Microsoft 365 admin center:

• Sign in to the Microsoft 365 admin center.
• In the left-hand navigation pane, go to Billing > Licenses.
• Under Subscriptions, click on the product license you want to assign to a group.
• Open the License details section.
• Click on the Groups tab on the page.

• Select + Assign licenses.
• Search for the group you want to assign the license to and select it.

• Click Assign to complete the process.

Verify Assignment Status

To verify license assignments to groups, return to the Billing > Licenses page and select the license. Check the License details section to view the assignment status. Groups may show statuses such as In progress or All licenses assigned, depending on the operation’s progress.

Points to Remember

• Ensure that dependent service plans are assigned together to avoid functionality issues.
• The number of licenses consumed corresponds to the unique members of the assigned group.
• Users can be part of multiple groups with different license policies. If a user is assigned the same license from multiple sources, it is consumed only once.
• If licenses can’t be fully assigned due to conflicts or availability, use the Microsoft Graph API or PowerShell to resolve the issues.
• Licenses are automatically assigned to new members who join a licensed group and removed when they leave. Changes typically take effect within minutes.

Group-based licensing in the Microsoft 365 admin center offers a streamlined approach to managing licenses across your organization. With this method, you can also ensure that new members are automatically licensed while departed users no longer consume resources unnecessarily. Whether managing a small team or an entire enterprise, leveraging the Microsoft 365 admin center for group-based licensing simplifies the process and ensures your organization stays productive and efficient.

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