General Background Information:

A user in Business Central must be first added to Office 365 and assigned a valid Business Central license.  This adds the user to the list of users in Business Central.  A user must have valid permissions granted via permission sets to the expected companies for the user to login.

To add users in Business Central, your company's Office 365 administrator must first create the users in the Office 365 Admin Center. For more information, see Add Users to Office 365 for business

Summary Steps for Managing Licenses and Users in Business Central

  1. Acquire the necessary Office 365 and/or  Business Central license via
  2. Add the User to your Office 365 tenant via the Admin console.
  3. Assign the related licenses via the Admin console.

If you are launching Business Central for the very first time, the associated admin user should be assigned a license and launch Business Central for the first time.  This will automatically add them with administrative permissions for your Business Central Tenant.

  1. Log into Business Central with your SUPER account, or an account that has permission to modify Business Central permissions and update the Users permission group and/or permission sets.


If a new user has been added/removed OR a license add/removed from a user in O365:

  • From the "Users" page in Business Central as a SUPER user or a user with security admin permissions in Business Central, run the "Update users from Microsoft 365" to sync the user changes:


If a user's license type is to be changed, for example from a Team Member to an Essentials license:

Microsoft Document Link: