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How does Microsoft Dynamics® 365 Business Licensing Work?

Dynamics 365 for Business Licences Explained

In previous blogs we were excited about the release of Microsoft Dynamics 365 for Financials (Business edition) in the UK. Now that you can buy it, what is it that you need? Although Microsoft licensing is traditionally very complicated, the subscription model of D365 is a lot easier to fathom. However, if you are new to licensing it can still be fairly confusing. This blog is a quick guide to what is available and what is included in the different types of licence. 

Choosing the right Microsoft Dynamics 365 Licences


The Dynamics 365 Licensing Model

There are three types of licenses for Dynamics 365:

  • Apps – Currently there is only the Financials app available on Business Edition, however later this year sales and marketing apps are due to be released. Apps Licensing will be the price for the full functionality of each individual app.
  • Team Members – These users are deemed to be “light” users, who have limited writing capabilities but can read anything across all apps on the company plan.
  • Plans – These users licences are designed to span across apps and so are not currently available. Plans will likely provide a low cost way to access all apps, or will be based on job functions.

It is worth noting at this stage that Dynamics 365 is permissions based and as such although the licence grants access to certain areas, the system administrator can restrict access based on permissions. 

Microsoft Dynamics 365 Licences for apps, team members and plans


Team Member Functionality

It is a requirement at this stage to have at least one Plan / App licence; for further users there is a large cost saving for using team member licences. But is there enough functionality for them? They can:

  • Read anything that’s enabled in Financials or any other Dynamics 365 Application
  • Update existing data and entries in Financials-Existing data (see table below)
  • Approve or reject tasks in all workflows assigned to a user
  • Create, edit, delete a quote or requisition
  • Create, edit, delete personal information
  • Enter a Time Sheet for Jobs
  • Use PowerApps for Dynamics 365

Dynamics 365 licence types with user access

*“EDIT” is Microsoft’s highest level use right which equates to adding create/delete to read & update granted elsewhere“

**Existing data are records like customer, vendor or item records which are already created. Entries means entries on which it is specifically allowed from an accounting perspective to update specific information, e.g. due date on customer ledger entries


Also Included in Your Licence

When purchasing Dynamics 365 licences you gain access to a number of tools and benefits


Each company receives a free licence for an external accountant to access the system. They are able to access everything other than user setup, admin tasks and CRM. An accountant can be invited to have a separate licence for any number of Dynamics 365 companies.

Your accountant can access your Dynamics 365 system for free without an extra licence being needed


Power Apps and Flow

Build custom business apps that connect to your data and with Dynamics 365 you get PowerApp P2 licences. The included Microsoft Flow licences allow you to automate workflow across apps. It must be noted that Business users using PowerApps need to be correctly licenced with Dynamics 365 with the data that they are viewing and editing.


Office 365 is not Included

It must be noted that although there are a lot of great features for integrations with Office 365, licences must be purchased separately. If you require Office 365 licences then please contact us for more information, or try for free now. 


Contact the Experts

If you need further help understanding your requirements, or would like to purchase Dynamics 365, please talk to our expert team who will help you on your Dynamics Journey.

Contact Us >

Choosing the right Microsoft Dynamics 365 Licences