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Microsoft Dynamics 365 FSCM Licensing - Priority based licensing

Licensing in Dynamics 365 Finance & Supply Chain Management  (D365 FSCM) has evolved from a static, menu-item-based model to a dynamic, priority-driven framework. Refer to my previous blog License Mapping on Menu Items to understand the new multi-license mapping structure on menu items

Each license type in D365 FSCM is now assigned a priority score, which determines how licensing is applied when users access multiple securable objects. The higher the priority score, the more comprehensive (and costly) the license.


The system evaluates the highest-priority license required based on the user’s role and access level. This means licensing is no longer just about what a user touches—it’s about how their role is structured and which license tier their role access escalates to. 

What happens if a user has multiple security roles?

The highest license requirement applies. In case security roles span multiple workloads, this user requires more than one full user license. For example, if a user has Buying agent and Accounts Payable security roles, this user needs both Supply Chain Management (Base) and Finance (Attach) licenses.

If user has custom security roles, how does per user license validation work?

When you use custom security roles, respective duties and privileges that comprise these roles will determine the licensing requirements.

What’s smart about this model is how it avoids unnecessary license stacking. If a menu item is accessible under both Finance (priority 70) and SCM (priority 80), the system assigns the Finance license—the lower priority, lower cost option. But if the user already holds an SCM license, the system won’t downgrade them to Finance just for that menu item. Instead, it honors the higher license already assigned (provided that the menu item is accessible under SCM), preventing redundant license buildup. 

This logic encourages organizations to design specific, role-aligned access models where each role maps cleanly to a single license type—eliminating cross-referencing licenses within one role and reducing compliance risk.

Based on the latest Microsoft guidance (as of September 2025), the following roles are excluded from license reporting and enforcement—when used appropriately within Dynamics 365 Finance & Operations:


To wrap up, now is the time to take a proactive stance. Start by refactoring your roles - remove any cross-licensed configurations and ensure each role is tied to a single, clearly defined license type. Use the User Security Governance (USG) workspace to pinpoint which securable objects are triggering license requirements, and validate those findings in Power Platform Admin Center (PPAC) to understand how license priority is being applied across your user base. Most importantly, educate your teams - this shift isn’t just technical; it’s a strategic governance opportunity that can streamline compliance, reduce costs, and future-proof your licensing model.
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