Buying and Removing Microsoft 365 Licenses

Question

Hello,

My organization has a Microsoft 365 subscription of 15 licenses. When new staffs are hired, new user accounts are created and "Assigned Licenses section" in the admin center showed 20/15. Later, for more staffs, new licenses are bought from the admin center and now the number of purchased licenses in my products list is 30. Recently, some staffs leaved the organization and we have 3 licenses not assigned. My subscription type is paid subscription with 1 year length and monthly recurring billing.

I would like to ask three questions.

(1) Can I remove excess licenses from the subscription? "Remove Licenses" button is in gray color and it says your changes will have effect when subscription is renewed.

(2) What is the more proper way to buy licenses if there is no available license?

   - Buying licenses at first and then assign to the new users OR 

   - Adding a new user and let the Microsoft buy new license and assign to the added user 

 Do both methods have the same effect on the subscription?

(3) Will it be charged according to purchased quantity of licenses?

Regards and thanks in advance

Answer 1

Hello Anderson370,

Good day! Thank you for your quick response to Microsoft Community

As per your first query, I would say no, you cannot. If you delete a user, then that user will delete, and the license will be counted as a unassign license. You can assign that license different user. You can reduce assign license quantity, but overall license quantity will be same.

Secondly, I would also say, no, you cannot avoid paying for unassigned licenses. No matter how many licenses you have used/assigned. You have to pay what you have purchased.

For more details related to billings/subscription, you may contact our billing business support Get support - Microsoft 365 admin | Microsoft Learn****

Below is the document to contact Microsoft 365 Business support team via Phone support. (Please check the number/s within your country/region).

Find Microsoft 365 for business support phone numbers by country or region - Microsoft 365 admin | Microsoft Learn. and Global customer service phone numbers - Microsoft Support

Thanks for your precious time and your understanding would be highly appreciated. Have a nice day!

Sincerely

Nafis Iqbal Shuvo

Answer 2

Thanks for your reply. Let me ask one more thing please.

Scenario 1: "Assigned Licenses" section in the admin center shows 18/15 (18 assigned/15 purchased)

Scenario 2: "Assigned Licenses" section in the admin center shows 18/20 (18 assigned/20 purchased)

Is there any difference in license managing between these two scenarios?

According to your answer, I have known that licenses quantity cannot be reduced immediately in Scenario 2.

Can I reduce license quantity in scenario 1 by just deleting active users?

Can I avoid paying for unassigned licenses by accepting "18/15" in the license list of the admin center?

Is there any way (eg, changing subscription type) to be able to remove license necessarily?

Thanks again.

Answer 3

Hello Anderson370,

Good day! Thank you for posting to Microsoft Community. We will be happy to assist you. 

As per your query, I am providing some information below.

(1) If the "Remove Licenses" button is grayed out and it says the changes will take effect when the subscription is renewed, it means that you cannot remove excess licenses from the subscription immediately. The removal will only happen when the subscription is renewed.

(2) The more proper way to buy licenses depends on your specific needs and preferences. Both methods can be used:

• Buying licenses at first and then assigning them to new users: This method allows you to have full control over the license allocation process. You can purchase the licenses in advance and assign them to new users as needed.
• Adding a new user and letting Microsoft buy a new license and assign it to the added user: This method simplifies the process by automatically purchasing and assigning a license when a new user is added. Microsoft will handle the license acquisition and assignment for you.

Both methods will have the same effect on the subscription, as the end result is the same - new licenses will be assigned to the users.

(3) Yes, you will be charged according to the purchased quantity of licenses. The cost of the licenses is based on the number of licenses you have purchased.

If I misunderstand you, please feel free to let me know. I will continue to assist you. Your understanding and co-operation are highly appreciated.

Thanks for your precious time. Have a nice day.

Sincerely,

Nafis Iqbal Shuvo