How to assign licenses to users by group memberships in Microsoft Entra ID (previously Azure Active Directory)

Administrators will sometimes be required to assign licenses to users according to their membership in particular groups. Assigning licenses based on group membership streamlines administrative tasks, making it easier to manage many users within an organization. Also, groups can have dynamic memberships, and assigning licenses based on group membership ensures that users always have the appropriate licenses as they move within the organization.

The table below compares how you can assign licenses to users based on group membership in Microsoft Entra ID using the native admin center and M365 Manager Plus.

Entra ID

Steps to assign licenses to users by group membership in Microsoft Entra ID

Sign in to Microsoft Entra ID as at least License Administrator.
Select Identity > Billing > Licenses.
Select All products, and choose the required licenses.
Click on Assign.
In the Assign license page, click on Users and groups.
In the list of users and groups, select a user or a group, and then click on Select to confirm your choice.
If you also want to disable any licenses, choose Assignment options in the Assign license page to display all the service plans and turn off the ones not required. Click Ok to confirm.
Click Assign.

M365 Manager Plus

Steps to assign licenses to users by group membership in M365 Manager Plus

Sign in to M365 Manager Plus as Administrator.
Navigate to Management > Azure Active Directory > License Management > Group Based License Modification.
Select Assign selected licenses from the dropdown menu.
Now select the licenses you want to assign and the usage location for the same.
Select the group(s) you want to assign the licenses to.
Now choose the Microsoft 365 tenant, the virtual tenants, and the users in the group you want to apply the license to. You can select all if required.
If you don't select any users, all the users from the group will be displayed.
Click on Find.
Now select the users and click on Apply to apply the license.

Limitations of using Entra ID

Administrators should have the required role to access individual native admin centers and execute tasks in them.

Benefits of using M365 Manager Plus to assign Entra ID licenses to users by group membership

Assign these tasks to any technician without needing to grant them elevated native privileges.
Assign and modify licenses in bulk. Easily assign multiple licenses to users and groups from a single console.
Manage users, mailboxes, groups, and contacts in bulk.
Keep an eye on various Microsoft 365 services such as Exchange Online, Azure Active Directory, SharePoint Online, and OneDrive for Business with pre-configured reports.
Automate report generation and various repetitive management tasks to save time and effort.
Keep a check on your Microsoft 365 services' health and performance with 24/7 monitoring.
Track all the activities happening in your organization with detailed audit reports.
Delegate custom roles to help desk technicians and reduce the administrator's workload.

Assign, modify, and remove licenses in bulk easily.

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