Microsoft has now provided long-awaited clarity on the license enforcement process for Dynamics 365 Finance & Operations (D365 F&O).
Originally, the enforcement rollout was expected to be completed by September 18, 2025, including in-app warnings for users without the correct licenses. However, these warnings did not appear, sparking speculation about another delay.
On September 24, 2025, Microsoft published an updated FAQ confirming that license enforcement has been postponed.
Key Takeaways from the Update
- Variable Start Dates: Enforcement will no longer follow a single global date. Instead, it will begin upon the renewal of the anniversary date of multi-year agreements, starting January 15, 2026.
- Early Notifications: 30 days prior to enforcement, affected users will see in-app alerts instructing them to contact their system administrators.
- Grace Period: After the enforcement start date, there will be an additional 15-day buffer before hard enforcement applies.
What This Means for Organizations
This change gives companies more time to prepare and offers a chance to optimize their licensing strategy. However, it also means that each client will face enforcement at different times, making it critical to plan ahead.
Without proper license alignment:
- Users risk losing access to essential functionality.
- Companies may face unnecessary costs due to over-licensing or compliance risks due to under-licensing.
How Codefine Supports You
At Codefine, our focus is solely on Microsoft Dynamics 365 F&O. With more than 20 years of ERP project experience, we help clients:
- Review and optimize user role assignments.
- Align license usage with actual business needs.
- Avoid compliance issues while reducing overall license spend.
- Prepare systems for enforcement before the new timelines take effect.
Final Note
The postponement is good news, but it should not be seen as a reason to delay preparation. Now is the best time to evaluate your licensing setup and ensure compliance.
You can check the link here.
If you want to ensure compliance while keeping costs under control, our team at Codefine is ready to help.
Learn more about our services here.
Contact us today to keep your ERP running at peak performance and reliability.here.
