Office 365 license assignment to Azure AD users is controlled or restricted by creating a new provisioning policy and applying the policy to the Organizational Unit.

To create and apply the new policy

1. From the Active Roles Console, create a Policy Object. For instructions on creating a policy object, see the section Creating a Policy Object, in the Active Roles Administration Guide.

NOTE: In Active Roles Console, select Office 365 License Management as the Policy to Configure page.

2. From the Web interface, assign or modify the Office 365 license for an Azure AD User.

The Policy is triggered for any Azure AD user in the Organization Unit for which the Office 365 License Management policy is applied.

If the policy conditions are not satisfied while assigning or modifying Azure AD User licenses, the following policy violation error is displayed:

Provisioning policy failure. The Office365 License Management policy encountered an error. Excepton in Office365 License Management Policy violation: The Azure user License(s) O365_BUSINESS_ESSENTIALS-INTUNE_O365, can be assigned. The policy prescribes that this Azure User requires only the specified license in the policy object to be assigned.

3. To check for policy violations, access the object in the Active Roles Console, right-click and click Check Policy.

   For a container object, this displays the Check Policy dialog box.

4. Review the options in the Check Policy dialog box and click OK.

   The Policy Check Results window is displayed.

NOTE: For information on Azure AD user provisioning policy for Office 365 licenses management see the Office 365 License Management section in the Active Roles Administration Guide.