How is Microsoft Dynamics 365 Licenced?

Microsoft Dynamics 365 Licensing:

Part 2. A simplified guide to understanding how to get Dynamics 365 F&O Licensing right.

For those considering moving to Microsoft Dynamics 365, this is the second of two posts explaining Dynamics 365 licencing. (Part 1 in this series covers how to get your licenses and can be found here.)

In this article, we focus on the different types of User and Device licences for Dynamics 365 Finance and Operations, and we also explain the requirement for Capacity Licences.

Dynamics 365 Finance & Operations User Licences

When it comes to Dynamics 365 F&O, there are two different types of broad ‘user’ type licences that grant access to the system. These licences are based largely on whether users require:

These two categories are further subdivided based on the requirements of the user as outlined below.

Full-Access User Licences:

Full users are those whose work requires the use of the feature-rich Finance & Operations functionality in one or more business areas. Examples of full users are typically finance managers, finance employees, supply chain managers, production managers, purchasing agents, and sales managers.

There are 4 full-access user licences related to 4 business areas: Finance, Supply Chain Management, Commerce, and Project Operations. Users can require one, or more than one licence, depending on the access they need to the different business areas.

Base and Attach Licences: If a user needs access to more than one business area, the first licence will be a “Base” licence, and the subsequent licences will work as “Attach” licences. Attach licences do not differ in functionality from the Base licence and are available for a discounted price. It is important to highlight that the Base licence must be the highest priced licence for any full user.

Additional User Licences:

Additional users are those who use the system without requiring full user capabilities. Microsoft divides these into three user groups with associated 3 types of licences: Activity Operations, Team Member, and Operations Device.

Activity Operations:

The Activity Operations User License provides limited access to Finance, Supply Chain Management, Commerce and Project Operations, including certain approval capabilities, warehousing activities, and activities to operate a POS device, store manager device, shop floor device, or warehouse device.

Team Member:

The Team Member User License grants read-only access to all data, and access to basic Dynamics 365 F&O functionality, such as expense and time entries, purchase requisitions and quality control.

Operations Device:

Not actually a ‘user’ license per se, but rather a device license.  The Operations Device License allows multiple users to operate a licensed point-of-sale device, shop floor device, warehouse device, or store manager device.

Through a licenced shared device, any number of unlicensed users can access the specific ERP functionality required to perform their role.

Dynamics 365 F&O Capacity licencing

In addition to User licensing, Microsoft D365 Finance and Operations also has a Capacity License requirement relating to the database capacity, file capacity and non-production environments.

User Licences grant users a default capacity, and if it is not enough, they can get additional capacity with a Dynamics 365 Capacity Licence.

For example, when you first install Dynamics 365 F&O, users will get 10 GB of database capacity, 20 GB of file capacity and 2 GB of log capacity by default. You do not have to buy a licence for this initial capacity. If you need more however, you can buy additional capacity with a capacity licence.

Capacity Licences apply to the capacity of the whole system rather than specific users.

Getting Dynamics 365 Licensing Right

Determining the optimal licences for your organisation is complex, and getting it wrong can lead to business inefficiencies, unnecessary costs, or non-compliance risks.

Help from a Microsoft Partner is essential for ensuring the correct security access levels – and identify any cost savings to be had.

Dynamo is a trusted Microsoft Gold Partner that can help advise you on your licensing requirements. We aim to make licensing simple to understand, be easy to deal with, and add value to this requirement.

Contact us today for an initial estimation, clarify your needs and help you potentially identify any optimisation opportunities.

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