Microsoft Delays Licence Enforcement for Dynamics 365 ERP Apps — But Is This the Start of Tenant Audits?

Microsoft has announced a significant change to the licence enforcement timeline for its Dynamics 365 ERP applications — and while the delay may offer temporary relief, it raises bigger questions about tenant-level compliance and potential audits.

New Enforcement Timeline

Originally, Microsoft planned to enforce licence assignments for Dynamics 365 ERP users starting 1 September 2025, later pushing that date to 1 November 2025. Now, enforcement will begin on a customer’s first anniversary or renewal date after 15 January 2026.

Here’s what that means for organisations:

• 30 days before renewal, unlicensed users will receive alerts.
• If licences are not assigned within 15 days of the renewal date, those users will lose access to the ERP apps.

You can read the updated announcement here.

Is This the Start of Microsoft Licence Audits?

This shift in enforcement strategy may signal a broader move by Microsoft to scrutinise tenant-level licence compliance although there are no official announcements on this. Organisations using Microsoft 365 E5 SKUs should pay close attention, especially if functionality is enabled at the tenant level but not all users are properly licensed.

Why this matters:

• Tenant-level activation may make features available to all users, even those without assigned licences.
• Unless policies are in place to restrict access or conditional access controls, this could lead to unintentional non-compliance.
• Microsoft can detect usage across tenants, and this enforcement update could be a precursor to automated audits or licence reconciliation checks.

Stay Ahead of Compliance

At The SAM Club we recommend proactively checking your Microsoft licences, not just for Dynamics 365 ERP. With enforcement mechanisms tightening and tenant-level visibility increasing, the risk of non-compliance (and associated costs) is real. We have seen shifts recently with Adobe and Broadcom (VMware) with this strategy.

If you need help reviewing your Microsoft licensing position or understanding how tenant-level features impact your compliance, please let us know. We’re here to help you stay audit-ready and licence-smart.