Skip to main content
Re-allocate User License takes a Microsoft 365 licence away from one person and gives the same licence to someone else, for example from a leaver to their replacement. It needs Microsoft 365 connected, with a GDAP role that can manage licences, such as License Administrator. To change one person’s licences instead, use License Management, which assigns before it removes.

Re-allocate User License in 50 seconds: what it asks, what it does and what you get.

​
What the form asks

​
What it does

  1. Creates a ticket in your PSA, if Ticketing is on.
  2. Waits for approval, if Approval is Internal or External, or a conditional override matches.
  3. Remove Licence: takes the licence away from the person in Remove licence from, in the client’s Microsoft 365.
  4. Assign Licence: gives the same licence to the person in Assign licence to.
Core removes the licence before it assigns it, and doesn’t check for a free seat first. It changes only licence assignments: it doesn’t set a usage location or change anything else on either account. Clients that sync on-premises Active Directory run the same steps, without the desktop agent. With Log actions to the ticket on, the ticket also gets a note when the run starts, after each step and when the run completes. The note after Remove Licence names the licence it removed.

​
Configure it

Go to Config, search for licence and click Re-allocate User License.

Configure Re-allocate User License: every option, step by step (1:28).

Approval, Ticketing and User directory filters are set on Base config and apply to every client unless you override them for one. For how Base config and client overrides work, see How configuration works.

​
Troubleshooting

Check User directory filters. Licensed users only is on by default, so people with no licence aren’t listed; untick it on Base config or for that client. Active users only hides accounts whose sign-in is blocked.
The licence was already removed from the person in Remove licence from, and Core doesn’t add it back. Open the run in Executions to see Microsoft’s error, fix the cause, then assign the licence in the Microsoft 365 admin center. With Log actions on, the ticket’s last note is the one for Remove Licence.