However, it is important to know the correct way to reassign a license. There is a way to do this that allows the license to be reused immediately, while another way holds onto the license for 30 days before it can be assigned to another user. For those businesses whose number of licenses equals or nominally exceeds their number of employees, it will be critical to remove the user in the correct way so the license is available immediately.
How to Ensure a Microsoft O365 License is Available to Reuse Immediately
- Log into the Microsoft O365 admin portal at portal.microsoft.com.
- From the Admin dashboard, click on "Active users".
- Scroll through the list of active users and click on the name of the user to remove. This opens a side panel with the details of that user.
- The user details box shows what licenses are currently assigned to that user.
- To remove the assigned licenses, click "Edit" next to the product licenses assigned to the user.
- Toggle any active licenses to the off position to remove them from the user. Click "Save" to save these changes.
- The user details box should now show there are no product licenses assigned to their account.
- To remove the user account, click the "Delete user" button at the top.
- Verify the user does NOT have any licenses assigned to them BEFORE they are deleted. NOTE: If you delete the user before you remove their licenses, they will not be available to assign to another user for 30 days!
- When prompted to confirm the changes, click "Confirm changes". This box should also show there are no licenses assigned under the Licenses section.
- Click "Close" at the Delete user summary screen.
- The user no longer appears in the active users list and any licenses removed can be applied to a new user.
As always, there are multiple ways to accomplish the same thing, but that does not mean the results are exactly the same!