Use this skill when managing Microsoft 365 licenses - checking available seats, assigning or removing licenses, auditing license usage, finding unused licenses, or planning license optimization for a customer tenant. Covers SKUs, service plans, and license cost efficiency for MSP account management.
M365 licensing is a top billing concern for MSPs. Licenses are purchased as SKU subscriptions, each containing bundles of service plans (Exchange, Teams, SharePoint, etc.). Efficient license management — finding unused seats, rightsizing SKUs, ensuring all users have what they need — directly impacts both the MSP's margin and the customer's costs.
M365 Business Premium (subscription)
└── GUID: cbdc14ab-d96c-4c30-b9f4-6ada7cdc1d46
├── Exchange Online (service plan)
├── Microsoft Teams (service plan)
├── SharePoint Online (service plan)
├── Intune (service plan)
└── Entra ID P1 (service plan)
| State | Meaning |
|---|---|
Enabled| Service plan is active and usable |
Disabled | Plan is turned off for this user (license still assigned) |
Error | Assignment failed — usually missing usageLocation |
LockedOut | Tenant billing issue |
PendingInput | Waiting for additional configuration |
GET /v1.0/subscribedSkus?$select=skuPartNumber,skuId,consumedUnits,prepaidUnits,servicePlans
Response:
{
"value": [
{
"skuPartNumber": "SPE_E3",
"skuId": "05e9a617-0261-4cee-bb44-138d3ef5d965",
"consumedUnits": 42,
"prepaidUnits": {
"enabled": 50,
"suspended": 0,
"warning": 0
},
"servicePlans": [...]
}
]
}
Available seats = prepaidUnits.enabled - consumedUnits
GET /v1.0/users?$select=id,displayName,userPrincipalName,accountEnabled,assignedLicenses,usageLocation&$top=999
Filter by SKU GUID:
GET /v1.0/users?$filter=assignedLicenses/any(x:x/skuId eq cbdc14ab-d96c-4c30-b9f4-6ada7cdc1d46)&$select=id,displayName,userPrincipalName,accountEnabled
GET /v1.0/users?$filter=assignedLicenses/$count eq 0&$count=true&$select=id,displayName,userPrincipalName,accountEnabled
Requires
ConsistencyLevel: eventualheader and$count=true
POST /v1.0/users/{userId}/assignLicense
Content-Type: application/json
{
"addLicenses": [
{
"skuId": "cbdc14ab-d96c-4c30-b9f4-6ada7cdc1d46",
"disabledPlans": []
}
],
"removeLicenses": []
}
usageLocationmust be set on the user before assigning. UsePATCH /v1.0/users/{id}with"usageLocation": "US"first.
POST /v1.0/users/{userId}/assignLicense
Content-Type: application/json
{
"addLicenses": [],
"removeLicenses": ["cbdc14ab-d96c-4c30-b9f4-6ada7cdc1d46"]
}
Assign a license but disable specific plans (e.g., give E3 without Teams):
POST /v1.0/users/{userId}/assignLicense
Content-Type: application/json
{
"addLicenses": [
{
"skuId": "05e9a617-0261-4cee-bb44-138d3ef5d965",
"disabledPlans": ["57ff2da0-773e-42df-b2af-ffb7a2317929"]
}
],
"removeLicenses": []
}
Pull subscribedSkus and calculate:
warning state (near renewal, overallocated)Find licenses assigned to disabled accounts — these are reclaim candidates:
GET /v1.0/users?$filter=accountEnabled eq false and assignedLicenses/$count ne 0&$count=true&$select=id,displayName,userPrincipalName,assignedLicenses
Users licensed but not signing in (90+ days):
GET /v1.0/users?$filter=accountEnabled eq true&$select=id,displayName,userPrincipalName,assignedLicenses,signInActivity
Filter results where signInActivity.lastSignInDateTime < (today - 90 days).
| Optimization | Estimated Saving |
|---|---|
| Remove licenses from disabled accounts | # disabled × monthly seat cost |
| Downgrade inactive users to lighter SKU | SKU price delta × count |
| Recover unused purchased seats | (purchased - consumed) seats available |
| SKU Part Number | GUID | Notes |
|---|---|---|
SPE_E3 | 05e9a617-0261-4cee-bb44-138d3ef5d965 | M365 E3 |
SPE_E5 | 06ebc4ee-1bb5-47dd-8120-11324bc54e06 | M365 E5 |
O365_BUSINESS_PREMIUM | cbdc14ab-d96c-4c30-b9f4-6ada7cdc1d46 | M365 Business Premium |
ENTERPRISEPACK | 6fd2c87f-b296-42f0-b197-1e91e994b900 | Office 365 E3 |
AAD_PREMIUM | 078d2b04-f1bd-4111-bbd4-b4b1b354cef4 | Entra ID P1 |
AAD_PREMIUM_P2 | 84a661c4-e949-4bd2-a560-ed7766fcaf2b | Entra ID P2 |
EMS | efccb6f7-5641-4e0e-bd10-b4976e1bf68e | EMS E3 |
| Error | Cause | Resolution |
|---|---|---|
LicenseAssignmentError | No usageLocation on user | Set usageLocation first |
MutuallyExclusiveLicenses | Two conflicting SKUs | Remove old SKU before assigning new |
Request_ResourceNotFound | Invalid SKU GUID | Verify GUID against subscribedSkus |
Authorization_RequestDenied | Missing Directory.ReadWrite.All | Grant admin consent |
| Task | Microsoft Graph Permission |
|---|---|
| View subscribed SKUs | Directory.Read.All |
| View user licenses | User.Read.All |
| Assign/remove licenses | User.ReadWrite.All or Directory.ReadWrite.All |
| Sign-in activity | AuditLog.Read.All |