Assign Microsoft 365 licenses to user accounts with PowerShell

This article applies to both Microsoft 365 Enterprise and Office 365 Enterprise.

Users can't use any Microsoft 365 services until their account has been assigned a license from a licensing plan. You can use PowerShell to quickly assign licenses to unlicensed accounts.

User accounts must first be assigned a location. Specifying a location is a required part of creating a new user account in the Microsoft 365 admin center.

Accounts synchronized from your on-premises Active Directory Domain Services don't by default have a location specified. You can configure a location for these accounts from:

• The Microsoft 365 admin center
• PowerShell
• The Azure portal (Active Directory > Users > user account > Profile > Contact info > Country or region).

First, connect to your Microsoft 365 tenant.

Assigning and removing licenses for a user requires the User.ReadWrite.All permission scope or one of the other permissions listed in the 'Assign license' Microsoft Graph API reference page.

The Organization.Read.All permission scope is required to read the licenses available in the tenant.

Connect-MgGraph -Scopes User.ReadWrite.All, Organization.Read.All

Run the Get-MgSubscribedSku command to view the available licensing plans and the number of available licenses in each plan in your organization. The number of available licenses in each plan is ActiveUnits - WarningUnits - ConsumedUnits. For more information about licensing plans, licenses, and services, see View licenses and services with PowerShell.

To find the unlicensed accounts in your organization, run this command.

Get-MgUser -Filter 'assignedLicenses/$count eq 0' -ConsistencyLevel eventual -CountVariable unlicensedUserCount -All

To find the unlicensed synchronized users in your organization, run this command.

Get-MgUser -Filter 'assignedLicenses/$count eq 0 and OnPremisesSyncEnabled eq true' -ConsistencyLevel eventual -CountVariable unlicensedUserCount -All -Select UserPrincipalName

You can only assign licenses to user accounts that have the UsageLocation property set to a valid ISO 3166-1 alpha-2 country code. For example, US for the United States, and FR for France. Some Microsoft 365 services aren't available in certain countries/regions. For more information, see About license restrictions.

To find accounts that don't have a UsageLocation value, run this command.

Get-MgUser -Select Id,DisplayName,Mail,UserPrincipalName,UsageLocation,UserType | where { $_.UsageLocation -eq $null -and $_.UserType -eq 'Member' }

To set the UsageLocation value on an account, run this command.

$userUPN="<user sign-in name (UPN)>"
$userLoc="<ISO 3166-1 alpha-2 country code>"

Update-MgUser -UserId $userUPN -UsageLocation $userLoc

For example:

Update-MgUser -UserId "belindan@litwareinc.com" -UsageLocation US

If you use the Get-MgUser cmdlet without using the -All parameter, only the first 100 accounts are returned.

To assign a license to a user, use the following command in PowerShell.

Set-MgUserLicense -UserId $userUPN -AddLicenses @{SkuId = "<SkuId>"} -RemoveLicenses @()

This example assigns a license from the SPE_E5 (Microsoft 365 E5) licensing plan to the unlicensed user belindan@litwareinc.com:

$e5Sku = Get-MgSubscribedSku -All | Where SkuPartNumber -eq 'SPE_E5'
Set-MgUserLicense -UserId "belindan@litwareinc.com" -AddLicenses @{SkuId = $e5Sku.SkuId} -RemoveLicenses @()

This example assigns SPE_E5 (Microsoft 365 E5) and EMSPREMIUM (ENTERPRISE MOBILITY + SECURITY E5) to the user belindan@litwareinc.com:

$e5Sku = Get-MgSubscribedSku -All | Where SkuPartNumber -eq 'SPE_E5'
$e5EmsSku = Get-MgSubscribedSku -All | Where SkuPartNumber -eq 'EMSPREMIUM'
$addLicenses = @(
    @{SkuId = $e5Sku.SkuId},
    @{SkuId = $e5EmsSku.SkuId}
)

Set-MgUserLicense -UserId "belinda@litwareinc.com" -AddLicenses $addLicenses -RemoveLicenses @()

This example assigns SPE_E5 (Microsoft 365 E5) with the MICROSOFTBOOKINGS (Microsoft Bookings) and LOCKBOX_ENTERPRISE (Customer Lockbox) services turned off:

$e5Sku = Get-MgSubscribedSku -All | Where SkuPartNumber -eq 'SPE_E5'
$disabledPlans = $e5Sku.ServicePlans | `
    Where ServicePlanName -in ("LOCKBOX_ENTERPRISE", "MICROSOFTBOOKINGS") | `
    Select -ExpandProperty ServicePlanId

$addLicenses = @(
    @{
        SkuId = $e5Sku.SkuId
        DisabledPlans = $disabledPlans
    }
)

Set-MgUserLicense -UserId "belinda@litwareinc.com" -AddLicenses $addLicenses -RemoveLicenses @()

This example updates a user with SPE_E5 (Microsoft 365 E5) and turns off the Sway and Forms service plans while leaving the user's existing disabled plans in their current state:

$userLicense = Get-MgUserLicenseDetail -UserId "belinda@litwareinc.com"
$userDisabledPlans = $userLicense.ServicePlans | `
    Where ProvisioningStatus -eq "Disabled" | `
    Select -ExpandProperty ServicePlanId

$e5Sku = Get-MgSubscribedSku -All | Where SkuPartNumber -eq 'SPE_E5'
$newDisabledPlans = $e5Sku.ServicePlans | `
    Where ServicePlanName -in ("SWAY", "FORMS_PLAN_E5") | `
    Select -ExpandProperty ServicePlanId

$disabledPlans = ($userDisabledPlans + $newDisabledPlans) | Select -Unique

$addLicenses = @(
    @{
        SkuId = $e5Sku.SkuId
        DisabledPlans = $disabledPlans
    }
)

Set-MgUserLicense -UserId "belinda@litwareinc.com" -AddLicenses $addLicenses -RemoveLicenses @()

This example updates a user with SPE_E5 (Microsoft 365 E5) and turns off the Sway and Forms service plans while leaving the user's existing disabled plans in all other subscriptions in their current state:

$userLicense = Get-MgUserLicenseDetail -UserId belinda@litwareinc.com

$userDisabledPlans = $userLicense.ServicePlans | Where-Object ProvisioningStatus -eq "Disabled" | Select -ExpandProperty ServicePlanId

$e5Sku = Get-MgSubscribedSku -All | Where SkuPartNumber -eq 'SPE_E5'

$newDisabledPlans = $e5Sku.ServicePlans | Where ServicePlanName -in ("SWAY", "FORMS_PLAN_E5") | Select -ExpandProperty ServicePlanId

$disabledPlans = ($userDisabledPlans + $newDisabledPlans) | Select -Unique

$result=@()
$allPlans = $e5Sku.ServicePlans | Select -ExpandProperty ServicePlanId

foreach($disabledPlan in $disabledPlans)
{
    foreach($allPlan in $allPlans)
    {
        if($disabledPlan -eq $allPlan)
        {
            $property = @{
                Disabled = $disabledPlan
            }
        }
     }
     $result += New-Object psobject -Property $property
}


$finalDisabled = $result | Select-Object -ExpandProperty Disabled


$addLicenses = @(
    @{
        SkuId = $e5Sku.SkuId
        DisabledPlans = $finalDisabled
    }
)


Set-MgUserLicense -UserId belinda@litwareinc.com -AddLicenses $addLicenses -RemoveLicenses @()

This example assigns jamesp@litwareinc.com with the same licensing plan that has been applied to belindan@litwareinc.com:

$mgUser = Get-MgUser -UserId "belindan@litwareinc.com" -Property AssignedLicenses
Set-MgUserLicense -UserId "jamesp@litwareinc.com" -AddLicenses $mgUser.AssignedLicenses -RemoveLicenses @()

This example upgrades a user from the SPE_E3 (Microsoft 365 E3) licensing plan to the SPE_E5 (Microsoft 365 E5) licensing plan:

$e3Sku = Get-MgSubscribedSku -All | Where SkuPartNumber -eq 'SPE_E3'
$e5Sku = Get-MgSubscribedSku -All | Where SkuPartNumber -eq 'SPE_E5'

# Unassign E3
Set-MgUserLicense -UserId "belindan@litwareinc.com" -AddLicenses @{} -RemoveLicenses @($e3Sku.SkuId)
# Assign E5
Set-MgUserLicense -UserId "belindan@litwareinc.com" -AddLicenses @{SkuId = $e5Sku.SkuId} -RemoveLicenses @()

You can verify the change in subscription for the user account with this command.

Get-MgUserLicenseDetail -UserId "belindan@litwareinc.com"

Manage Microsoft 365 with PowerShell

Manage Microsoft 365 with PowerShell

Get started with the Microsoft Graph PowerShell SDK

Use the Microsoft Graph user: assignLicense and subscribedSku APIs