The external users will not be able to check out or edit the file directly. You can add the accounts to your domain first, this will allow these features. Or create a new account for them from the admin panel. They will be able to use all the functions normally for these files and future collaborative work.
To add an external user in Microsoft Admin, you need to<sup>1234</sup>:
- Sign in to Microsoft Admin as an admin.
- Go to Settings > Accounts > Other users (in some Windows editions, it may be labeled as Other people or Family & other users).
- Under Work or school users > Add a work or school account, select Add account.
- Enter that person's user account, select the account type, and then select Add.
- Alternatively, you can add a user without a Microsoft account by selecting "I don't have this person's sign-in information"<sup>2</sup>.
- To configure External access, sign in to Microsoft 365 as a Global Admin and go to External collaboration settings in the Azure AD portal<sup>4</sup>.
- Only trained professionals certified to modify Azure AD security should be configuring Azure AD security<sup>4</sup>.
Sources:
- https://support.microsoft.com/en-us/windows/add-or-remove-accounts-on-your-pc-104dc19f-6430-4b49-6a2b-e4dbd1dcdf32
- https://support.microsoft.com/en-au/windows/create-a-local-user-or-administrator-account-in-windows-20de74e0-ac7f-3502-a866-32915af2a34d
- https://answers.microsoft.com/en-us/outlook_com/forum/all/how-can-i-add-external-user-to-shared-mailbox/bd1880c4-592a-4a77-a0f1-bf3a239c29d9
- https://www.zubairalexander.com/blog/how-to-add-external-users-to-microsoft-365-for-collaboration/