How to Assign Licenses to Users and Groups in Entra ID?

In Microsoft Entra ID (formerly Azure Active Directory), assigning licenses to users and groups is an essential part of managing access to various Microsoft services and applications like Office 365, Microsoft 365, Dynamics 365, and others.

Licenses in Microsoft Entra ID are typically assigned to users to grant them access to these services based on their needs.

You can assign licenses either individually to users or in bulk through groups.

Below are the steps to assign licenses to users and groups.

Assigning Licenses to Users in Microsoft Entra ID

Step 1: Sign In to Microsoft Entra Admin Center

1. Go to the Microsoft Entra Admin Center or Azure portal.

2. Sign in with an account that has the appropriate admin privileges (e.g., Global Administrator or User Administrator).

Step 2: Navigate to the Licenses Section

1. In the left-hand navigation pane, click on Users.

2. From the Users page, select the user to whom you want to assign the license.

3. In the user profile, click on the Licenses tab.

Step 3: Assign a License to a User

1. On the Licenses tab, click + Assignments or Assign to start the license assignment process.

2. A list of available licenses will appear.

   • Choose the license you wish to assign from the available options (for example, Office 365 E3, Microsoft 365 Business Premium, EMS, etc.).

3. After selecting the license, you can also configure specific service plans included within that license (e.g., Exchange Online, Teams, SharePoint, etc.).

   • You can toggle services on/off based on your needs.

4. Click Save to assign the license to the user.

Assigning Licenses to Multiple Users (Bulk Assignment)

If you need to assign licenses to multiple users at once, you can use the bulk assignment feature.

This can be useful when adding users to a new service or changing licenses for a group of users.

Step 1: Use the Bulk Licensing Interface

1. In the Entra Admin Center, go to Users and then select Licenses.

2. Click on Bulk assign at the top of the page.

Step 2: Select Users and License Type

1. A dialog will appear allowing you to upload a CSV file with the list of users you want to assign licenses to.

2. Download the sample CSV file to see the required format.

   • The file typically contains columns like UserPrincipalName (user email or UPN), License SKU ID, and so on.

3. Fill out the CSV file with the users’ UPNs (email addresses) and the corresponding License SKU IDs.

4. Upload the file once you've populated it with the correct information.

Step 3: Review and Confirm

1. Review the list of users and licenses before confirming.

2. Click Assign to apply the licenses.

Assigning Licenses to Groups in Microsoft Entra ID

You can assign licenses to groups, which allows you to automatically assign licenses to all members of a group.

This method is useful when you have users with similar licensing needs, such as employees in the same department.

Step 1: Create or Identify a Group

1. Go to the Entra Admin Center.

2. In the left navigation, select Groups and either select an existing group or click + New group to create a new one.

3. If creating a new group, configure the group settings (e.g., Group name, Group type, Membership type, etc.).

Step 2: Assign a License to the Group

1. In the Group pane, select the group to which you want to assign the license.

2. Go to the Licenses tab for that group.

3. Click + Assignments or Assign to start assigning the license.

4. Choose the license you want to assign and configure the service plans as needed.

5. Click Save to assign the license to the entire group.

Step 3: License Assignment and Group Members

Once a license is assigned to a group, all users who are members of that group will automatically receive the license.

If a user is added to the group later, they will inherit the license assignment automatically.

Conversely, if a user is removed from the group, they will lose the license.

How to Review and Manage Assigned Licenses

Review Licenses Assigned to a User

1. Go to Users in the Entra Admin Center.

2. Select a specific user and navigate to the Licenses tab.

3. You can see the current licenses assigned to the user and modify them as needed (e.g., add or remove services).

Review Licenses Assigned to a Group

1. Go to Groups in the Admin Center.

2. Select the group, then go to the Licenses tab.

3. Here, you can see which licenses are assigned to the group, and manage them by adding/removing licenses.

Removing Licenses

To remove a license from a user or group, simply follow the same steps as for assigning licenses but choose Remove license instead of Assign.

You can remove the entire license or just specific service plans within the license.

Best Practices for License Assignment

1. Use Groups for Efficient Management

Assign licenses to groups instead of individual users when possible.

This ensures that licenses are automatically managed as users come and go.

2. Leverage Dynamic Groups

Dynamic groups can automatically update memberships based on attributes like job title, department, or location.

This is especially useful for automatically assigning licenses to users based on their role or department.

3. Monitor License Usage

Regularly monitor license usage to ensure you're not exceeding license quotas.

You can view reports on license utilization in the Entra ID Licensing section.

4. License Assignment Automation

Use Azure AD PowerShell or Microsoft Graph API to automate license assignments if you have a large organization or need to integrate with custom processes.

Assigning Licenses via PowerShell

For advanced users, you can also use PowerShell to assign licenses in bulk, especially when working with many users or automating tasks.

Here's an example of how to assign a license to a user:

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# Connect to Microsoft Entra ID
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Connect-AzureAD
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# Get the user
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$user = Get-AzureADUser -ObjectId "user@example.com"
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# Get the license SKU
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$sku = Get-AzureADSubscribedSku | Where-Object {$_.SkuPartNumber -eq "ENTERPRISEPACK"}
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# Assign the license
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Set-AzureADUserLicense -ObjectId $user.ObjectId -AssignedLicenses @{Add=$sku.ObjectId}

This script connects to Azure AD, finds the user, retrieves the SKU for the Office 365 Enterprise E3 license (identified by ENTERPRISEPACK), and assigns it to the user.

Conclusion

Assigning licenses to users and groups in Microsoft Entra ID is an essential part of managing access to cloud resources and services like Office 365, Teams, and other Microsoft 365 applications.

By using the Entra Admin Center or PowerShell, you can easily manage these assignments on a per-user or per-group basis.

For larger organizations, it’s recommended to use group-based licensing for efficiency and automation, ensuring that users receive the appropriate licenses based on their roles or departments.