Microsoft’s License Enforcement for D365 Finance & SCM: What Customers Need to Do Now

MSDW Insight: As license enforcement milestones and deadlines arrive, evidence shows that F&SCM customers will have to remain vigilant to balance compliance and user access. 

License enforcement for Microsoft’s Dynamics 365 Finance & Supply Chain Management (F&SCM) applications entered its first phase on September 1, 2025. While Microsoft indicated that unlicensed users would see in-app notifications, many organizations are instead reporting email alerts to administrators. 

Rather than appear all at once, it seems in-app notifications will be introduced gradually throughout September. Combined with discrepancies in the new reporting tools and role mismatches due to unexpected requirements, the Dynamics community is confused on next steps. With less than two months until the November 1 hard block deadline, companies need to act quickly and assess their license structures to avoid costly disruptions and compliance risks.

What’s Happening as of September

Microsoft’s September 1 “soft block” has begun. In theory, unlicensed users should now see in-app banners reminding them to request proper licenses. But in reality, many organizations report receiving administrator email notifications rather than on-screen alerts for users. This inconsistency has added to the confusion.

The November 1 “hard block” remains firm. From that date, any active user without a valid license assignment will be locked out of F&SCM, Finance Premium, Supply Chain Management, Commerce, Project Operations, and HR applications.

Why This Matters

Discrepancies in the enforcement’s roll-out don’t diminish the urgency of this matter. Even if in-app banners are delayed, the November deadline is approaching quickly. Without planning and action, organizations on Dynamics 365 could experience: