Use this skill when managing Microsoft 365 licenses - checking available seats, assigning or removing licenses, auditing license usage, finding unused licenses, or planning license optimization for a customer tenant. Covers SKUs, service plans, and license cost efficiency for MSP account management.
Scanned 5/27/2026
Install via CLI
openskills install wyre-technology/msp-claude-plugins---
name: "Microsoft 365 Licensing"
description: >
Use this skill when managing Microsoft 365 licenses - checking available seats,
assigning or removing licenses, auditing license usage, finding unused licenses,
or planning license optimization for a customer tenant. Covers SKUs, service
plans, and license cost efficiency for MSP account management.
when_to_use: "When managing Microsoft 365 licenses - checking available seats, assigning or removing licenses, auditing license usage, finding unused licenses"
triggers:
- m365 license
- microsoft 365 license
- m365 seats
- m365 sku
- license audit
- license usage m365
- unused license m365
- license assignment m365
- m365 subscription
- license optimization
---
# Microsoft 365 Licensing
## Overview
M365 licensing is a top billing concern for MSPs. Licenses are purchased as SKU subscriptions, each containing bundles of service plans (Exchange, Teams, SharePoint, etc.). Efficient license management — finding unused seats, rightsizing SKUs, ensuring all users have what they need — directly impacts both the MSP's margin and the customer's costs.
## Core Concepts
### Subscription → SKU → Service Plans
```
M365 Business Premium (subscription)
└── GUID: cbdc14ab-d96c-4c30-b9f4-6ada7cdc1d46
├── Exchange Online (service plan)
├── Microsoft Teams (service plan)
├── SharePoint Online (service plan)
├── Intune (service plan)
└── Entra ID P1 (service plan)
```
### License States
| State | Meaning |
|-------|---------|
| `Enabled` | Service plan is active and usable |
| `Disabled` | Plan is turned off for this user (license still assigned) |
| `Error` | Assignment failed — usually missing `usageLocation` |
| `LockedOut` | Tenant billing issue |
| `PendingInput` | Waiting for additional configuration |
## Graph API Patterns
### Get All SKUs Available in Tenant
```http
GET /v1.0/subscribedSkus?$select=skuPartNumber,skuId,consumedUnits,prepaidUnits,servicePlans
```
**Response:**
```json
{
"value": [
{
"skuPartNumber": "SPE_E3",
"skuId": "05e9a617-0261-4cee-bb44-138d3ef5d965",
"consumedUnits": 42,
"prepaidUnits": {
"enabled": 50,
"suspended": 0,
"warning": 0
},
"servicePlans": [...]
}
]
}
```
**Available seats = `prepaidUnits.enabled` - `consumedUnits`**
### Get All Users With Their Assigned Licenses
```http
GET /v1.0/users?$select=id,displayName,userPrincipalName,accountEnabled,assignedLicenses,usageLocation&$top=999
```
### Find Users With a Specific License
Filter by SKU GUID:
```http
GET /v1.0/users?$filter=assignedLicenses/any(x:x/skuId eq cbdc14ab-d96c-4c30-b9f4-6ada7cdc1d46)&$select=id,displayName,userPrincipalName,accountEnabled
```
### Find Unlicensed Users
```http
GET /v1.0/users?$filter=assignedLicenses/$count eq 0&$count=true&$select=id,displayName,userPrincipalName,accountEnabled
```
> Requires `ConsistencyLevel: eventual` header and `$count=true`
### Assign a License to a User
```http
POST /v1.0/users/{userId}/assignLicense
Content-Type: application/json
{
"addLicenses": [
{
"skuId": "cbdc14ab-d96c-4c30-b9f4-6ada7cdc1d46",
"disabledPlans": []
}
],
"removeLicenses": []
}
```
> `usageLocation` must be set on the user before assigning. Use `PATCH /v1.0/users/{id}` with `"usageLocation": "US"` first.
### Remove a License from a User
```http
POST /v1.0/users/{userId}/assignLicense
Content-Type: application/json
{
"addLicenses": [],
"removeLicenses": ["cbdc14ab-d96c-4c30-b9f4-6ada7cdc1d46"]
}
```
### Disable Specific Service Plans (Partial License)
Assign a license but disable specific plans (e.g., give E3 without Teams):
```http
POST /v1.0/users/{userId}/assignLicense
Content-Type: application/json
{
"addLicenses": [
{
"skuId": "05e9a617-0261-4cee-bb44-138d3ef5d965",
"disabledPlans": ["57ff2da0-773e-42df-b2af-ffb7a2317929"]
}
],
"removeLicenses": []
}
```
## License Audit Workflow
### Step 1: Inventory Available SKUs
Pull `subscribedSkus` and calculate:
- Total purchased per SKU
- Consumed seats
- Available seats
- SKUs in `warning` state (near renewal, overallocated)
### Step 2: Cross-Reference With Active Users
Find licenses assigned to disabled accounts — these are reclaim candidates:
```http
GET /v1.0/users?$filter=accountEnabled eq false and assignedLicenses/$count ne 0&$count=true&$select=id,displayName,userPrincipalName,assignedLicenses
```
### Step 3: Find Inactive Licensed Users
Users licensed but not signing in (90+ days):
```http
GET /v1.0/users?$filter=accountEnabled eq true&$select=id,displayName,userPrincipalName,assignedLicenses,signInActivity
```
Filter results where `signInActivity.lastSignInDateTime < (today - 90 days)`.
### Step 4: Produce Optimization Report
| Optimization | Estimated Saving |
|--------------|----------------|
| Remove licenses from disabled accounts | # disabled × monthly seat cost |
| Downgrade inactive users to lighter SKU | SKU price delta × count |
| Recover unused purchased seats | (purchased - consumed) seats available |
## Common SKU GUIDs Reference
| SKU Part Number | GUID | Notes |
|-----------------|------|-------|
| `SPE_E3` | `05e9a617-0261-4cee-bb44-138d3ef5d965` | M365 E3 |
| `SPE_E5` | `06ebc4ee-1bb5-47dd-8120-11324bc54e06` | M365 E5 |
| `O365_BUSINESS_PREMIUM` | `cbdc14ab-d96c-4c30-b9f4-6ada7cdc1d46` | M365 Business Premium |
| `ENTERPRISEPACK` | `6fd2c87f-b296-42f0-b197-1e91e994b900` | Office 365 E3 |
| `AAD_PREMIUM` | `078d2b04-f1bd-4111-bbd4-b4b1b354cef4` | Entra ID P1 |
| `AAD_PREMIUM_P2` | `84a661c4-e949-4bd2-a560-ed7766fcaf2b` | Entra ID P2 |
| `EMS` | `efccb6f7-5641-4e0e-bd10-b4976e1bf68e` | EMS E3 |
## Error Handling
| Error | Cause | Resolution |
|-------|-------|------------|
| `LicenseAssignmentError` | No `usageLocation` on user | Set `usageLocation` first |
| `MutuallyExclusiveLicenses` | Two conflicting SKUs | Remove old SKU before assigning new |
| `Request_ResourceNotFound` | Invalid SKU GUID | Verify GUID against `subscribedSkus` |
| `Authorization_RequestDenied` | Missing `Directory.ReadWrite.All` | Grant admin consent |
## Permissions Required
| Task | Microsoft Graph Permission |
|------|---------------------------|
| View subscribed SKUs | `Directory.Read.All` |
| View user licenses | `User.Read.All` |
| Assign/remove licenses | `User.ReadWrite.All` or `Directory.ReadWrite.All` |
| Sign-in activity | `AuditLog.Read.All` |
## Related Skills
- [M365 Users](../users/SKILL.md) - User management and usageLocation
- [M365 Security](../security/SKILL.md) - License impact on security features (P1/P2)
- [M365 API Patterns](../api-patterns/SKILL.md) - Advanced filter, count queries
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