Automatically assign license(s) to groups in Office 365 (Manual)

When you want to align license assignments in Office 365 it might be helpful to automatically assign licenses to users by adding them to groups. This way you can make sure that everybody gets the right license and avoid mistakes.

The problem with medium or large companies is that they have an on-premise Active Directory environment where they create the users. This needs to be synced to Azure AD which takes some time (Although it can be forced), after that you can assign a license.

Then there is a case where you run out of licenses, you will need to increase the seat count through your MSP, and that takes time. When the new licenses are added, you will need to login again in the admin portal to assign the license.

Al this can be easier done with group based licensing.


STEP 1: Create Office 365 License group

Go to the Azure Admin Portal (

Go to Azure Active Directory, Groups and click on New Group

Create new Azure AD Group

Fill in the name and description of the group. You can directly assign members to the group or do it later.

Create Azure AD group based licensing group

STEP 2: Assign License to the group

From the Azure Active Directory blade click on Licenses

Azure AD Licenses

Go to All products, select a license, and click Assign

Azure AD Licenses

Select the group that you’ve just created

Assign Azure AD License

Select the assignment options, and click on Review + assign

Azure AD license assignment options

That’s it. Please let me know if you have any questions!

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