How to find Office 365 licenses used by disabled accounts

Determining unused licenses in Office 365 involves reviewing your subscription's licensing information and user assignments. Specifically, disabled users who are still assigned Microsoft 365 / office 365 licenses can realize some savings for your organization in licensing costs. Here's how you can check for unused licenses: You will need MSOnline PowerShell module for this operation. In order to get the MSOL module installed and imported follow steps outlined here: https://learn.microsoft.com/en-us/powershell/azure/active-directory/install-msonlinev1?view=azureadps-1.0 After you have the MSOL module installed and imported, follow these steps

1.?????? Open PowerShell as Administrator

2. Connect to the MSOL service Connect-MSOLService

Connect-MSOLService         

3. Run the following command in PowerShell

Get-MsolUser -MaxResults 99000 |Select UserPrincipalName,LastPasswordChangeTimestamp,DisplayName,PasswordNeverExpires,IsLicensed,Licenses,LiveID,WhenCreated,StrongAuthenticationMethods,StrongPasswordRequired,UserType,BlockCredential | Export-CSV "C:\Temp\AzureAccountExp.CSV"        

This will create a CSV file in C:Temp

You can open the file with Excel and then save it as XLSX file type. This will allow you to enable data filtering and filter for users who are disabled but have a license assigned. Field BlockCredential shows if the account is disabled in AzureAD / EntraID

Field IsLicensed shows if the account is licensed in AzureAD / EntraID

Check the list of assigned licenses to users that are disabled. Those users may have OneDrive or Exchange data that needs to be archived after which you can remove the licenses and reassign to new users or reduce the number of licenses you pay for to realize the savings.