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Microsoft Dynamics 365 FSCM Licensing - New Multi-License Mapping on Menu Items

Licensing in enterprise systems has long been a game of mapping menu items to license types, ticking boxes, and hoping your role design didn’t trigger unexpected costs. But with the 2025 updates to Dynamics 365 Finance and Operations, Microsoft has flipped the script—ushering in a smarter, more flexible model that reflects how users actually work.

Let’s break it down. In the legacy model, each menu item was tied to a single license type. For instance, if a user accessed MenuItemA that had a Finance license type on it, they needed a Finance license. If they accessed MenuItemB with SCM assigned on it, they needed SCM. Simple? Yes. But also rigid, prone to over-licensing, and blind to real-world role overlap.

Example: 

This model treated licensing like a static blueprint—ignoring the nuance of blended roles, attach licenses, and shared responsibilities across departments.

Fast forward to 2025. Microsoft’s new licensing logic is object-level, dynamic, and context-aware. Now, a single menu item can be accessed under multiple license types, depending on the user’s role configuration and entitlements.

Example:
This shift reflects a more realistic view of enterprise operations. Finance users might initiate supply chain actions. SCM users might review financial data. The system now recognizes that overlap—and allows for shared access without redundant licensing.

Why This Matters
  • License efficiency: You stop paying for licenses users don’t need.
  • Cleaner role design: Roles become strategic, not patchwork.
  • Better governance: You can justify every license with a clear role-to-function map.
  • Audit readiness: When enforcement hits (Jan 2026), you’re already aligned.
Licensing isn’t just about compliance—it’s about clarity. When roles are designed with purpose, licensing becomes predictable, scalable, and cost-effective. So if you’re still assigning roles like “Finance + a bit of SCM,” it’s time to rethink. Because in the new model, specificity saves money!

Stay tuned for upcoming blogs as I share my learnings on Microsoft 's new licensing model for Dynamics 365 FSCM.  Let’s build smarter roles. Let’s license with intention. 
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Comments

  1. James KOctober 5, 2025 at 3:13 PM

    This is a great overview Patrick! Can you share more information on which license is applied with the menu item driven licensing when it has one or more license associated?

    ReplyDelete

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