1) Prerequisites (valid for all licenses)

1.1 Where licenses are assigned

For Business Central online (SaaS), user accounts must first be created in the Microsoft Entra admin center (https://entra.microsoft.com/) and licenses can be assigned there (or by the partner).

1.2 How do licenses arrive in Business Central?

After creating users/assigning licenses in the Microsoft 365 admin center:

• the user is automatically imported on first login , or
• An admin can import/sync from BC with Users → Update Users from Microsoft 365 (recommended).

Note: The Update Users from Microsoft 365 action requires the SUPER permission set.

2) “User” licenses (Essentials and Premium)

2.1 Assign an Essentials or Premium or Team Member license to a user

Step A — Create/enable user and assign license (Microsoft Login admin center)

1. Create (or verify) user in Microsoft Sign In admin center (internal tenant user).
2. Assign the user the Dynamics 365 Business Central Essentials or Dynamics 365 Business Central Premium or Dynamics 365 Business Central Team Member license (depending on the role).

Note: Licenses are often “uploaded” to your tenant by the partner/Partner Center based on your subscription.

Step B — Synchronize the user in Business Central and verify the license

1. Log in to Business Central with an admin user.
2. Search Users .
3. Run Update Users from Microsoft 365 to import users and license assignments .
4. Open the user tab and verify that the license is correct (Essentials / Premium) and then assign the necessary permission sets / user groups (application operation).

Microsoft Tip: After adding users and licenses, it's best to update BC immediately so users don't run into problems when logging in for the first time (especially if you've customized license permissions).

3) Device License (for shared workstations: POS, warehouse, shop floor)

3.1 How it works (in brief)

The Device license covers one “shared device” and allows simultaneous access up to the number of device licenses purchased; authorized users are those who are members of the Dynamics 365 Business Central Device Users group.

Key points:

• A “device user” cannot be the first user to log into the tenant: the first login must be done by an Admin/Full User/External Accountant to complete the setup.

3.2 Procedure — Enabling the use of the Device license

Step A — Create/enable user and assign license (Microsoft Login admin center)

1. Create (or verify) user in Microsoft Sign In admin center (internal tenant user).
2. Assign the Dynamics 365 Business Central Device license to the user.

Step B — Create the “Device Users” group (Microsoft Access admin center)

1. Go to Groups .
2. Add a group .
3. Choose Security as the group type.
4. Group Name: Dynamics 365 Business Central Device Users (must be written exactly like this in English).

Step C — Add members (users) to the group

1. Still in Groups , open the group you just created.
2. Go to member management and click Add members .
3. Add users who will use shared devices.

You can add as many users as you like to the group; the practical limit is how many concurrent sessions you can cover with the device licenses you purchased.

Step C — Synchronize the user in Business Central and verify the license

1. Log in to Business Central with an admin user.
2. Search Users .
3. Run Update Users from Microsoft 365 to import users and license assignments .
4. Open the user tab and verify that the license is correct (Essentials / Premium) and then assign the necessary permission sets / user groups (application operation).
5. Search the Devices table
6. Enter a device for each user who has the device license and set the enabled flag