Tenant license usage not reflecting correctly in Microsoft 365 admin center

Moleski 160 Reputation points
2025-11-05T11:38:49.7466667+00:00

I’m seeing an issue in my Microsoft 365 tenant where the license consumption displayed in the Microsoft 365 admin center doesn’t match the actual number of assigned users.

For example, we have 120 E3 licenses purchased, and only 108 users assigned, but the portal shows 118 licenses “in use.” I verified through Azure AD and the Licensing blade that only 108 users have the E3 SKU assigned. I also checked for any service accounts or disabled accounts and didn’t find unexpected assignments.

Exchange | Licensing
Exchange | Licensing
The framework for legally deploying and using Microsoft Exchange Server or Exchange Online, based on server and client access models.
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  1. Jack-Bu 5,495 Reputation points Microsoft External Staff Moderator
    2025-11-05T13:27:15.51+00:00

    Hello Moleski,

    Thank you for reaching out to Microsoft Q&A regarding the license mismatch issue. There are several possible causes, include: Group-Based Licensing Issues, Overlooked Assignments. Here something you can do to pinpoint and resolve the issue:

    Examine Audit Logs:

    • In Microsoft Entra Admin Center > Audit logs, filter for "Change user license" activities with failures. Look for errors like "MutuallyExclusiveViolation" or "DependencyViolation."

    Use PowerShell for Precise Verification via Microsoft Graph:

    Install Microsoft Graph PowerShell SDK: Install-Module Microsoft.Graph.

    Connect: Connect-MgGraph -Scopes "User.Read.All", "Group.Read.All", "Directory.Read.All".

    Get E3 SKU ID: $e3SkuId = (Get-MgSubscribedSku | Where-Object { $_.SkuPartNumber -eq 'SPE_E3' }).SkuId.

    Count assigned users: Get-MgUser -All -Filter "assignedLicenses/any(s:s/skuId eq $e3SkuId)" | Measure-Object.

    Export for review: Get-MgUser -All -Filter "assignedLicenses/any(s:s/skuId eq $e3SkuId)" -Select UserPrincipalName, AssignedLicenses | Export-Csv -Path "E3Users.csv" -NoTypeInformation.

    Reprocess for a user: Invoke-MgReprocessLicenseAssignment -UserId <UserID>.

    Additionally, check the Activations report in Admin Center > Reports > Usage > Microsoft 365 > Activations for usage insights. Also "Reprocess" licenses in the admin center for affected groups/users.

    Hope this help.


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