RPM - SETTING UP BC USERS AND MANAGING BC LICENSES IN BUSINESS CENTRAL

 

The Problem: What This Actually Means

User and license management can feel confusing because there are multiple moving parts:

1. Microsoft 365 accounts - The user's login identity
2. Business Central licenses - The type of access they get (Full User, Team Member, Essential, etc.)
3. User roles and permissions - What they can actually do once they're in
4. Seat limits - How many users your company can have at once

Most questions fall into one of these categories: "How do I add someone?" "How many users can we have?" "What role should this person have?" "Why can't they access something?"

Let's walk through each scenario.

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Before You Start: Quick Checklist

[ ] Do you have access to Microsoft 365 admin center or Business Central admin center?
[ ] Is the person's Microsoft 365 account already created?
[ ] Do you know what role this person should have in Business Central?
[ ] Do you have information about your current license count?

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Understanding License Types

Before adding users, you need to know what license types exist. This determines what they can do.

License Type Comparison

License Type	What They Can Do	Best For	Cost
Full User	Everything - enter data, approve documents, run reports, access all modules in Essentials plus Manufacturing and Service Management	Managers, power users, your core team	Full cost
Team Member	Limited module access, data entry, viewing, but no approval authority	Data entry staff, field workers, order takers	~50% of Full User
Essential	Covers core ERP capabilities.  Financials, day-to-day operations, basic supply chain management	Executives viewing dashboards, occasional users	Lower cost
External Accountant	Focused access to financial data only	CPAs, bookkeepers, auditors	Special pricing
Device License	Shared login for devices (not individuals)	Warehouse scanners, shared tablets	Lower cost

What to do:

• Determine what the new user actually needs to do
• Match that to the appropriate license type
• Communicate the license type to your partner that manages your Microsoft 365 account

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Part 1: Adding a New User

This is the process of getting someone access to Business Central.

Step 1: Verify Microsoft 365 Account Exists

Every Business Central user needs a Microsoft 365 account first.

1. Ask the new user for their email address

   • This will be their Business Central login

2. Have your Microsoft 365 administrator check if the account exists

   • They log into Microsoft 365 admin center (admin.microsoft.com)
   • Go to Users > Active Users
   • Search for the person's email
   • If it exists: Great, skip to Step 2
   • If it doesn't exist: They need to create it first (they'll handle this)

What to do:

• If the account doesn't exist, contact whoever manages your Microsoft 365 (might be internal IT or an MSP)
• They'll create the account and assign the appropriate license
• Once it's created, come back to Step 2

Step 2: Add Them to Business Central

Once they have a Microsoft 365 account, you can add them to Business Central.

1. Open Business Central

2. Go to Administration > Users (or Settings > Users, depending on version)

3. Click "Update users from Microsoft 365" from the Home menu

4. Assign an initial role (optional at this stage)

   • You can assign more detailed permissions later
   • For now, pick a general role like "Accountant" or "Sales Manager"

What to do:

• The user is now added to Business Central
• They can log in with their Microsoft 365 email and password
• If they can't log in, they might not have the right Microsoft 365 account yet (go back to Step 1)

Step 3: Configure User Permissions and Roles

Now that they exist in Business Central, you can control what they can actually do.

1. Go User Settings

2. Find the user you just created

3. Click to open their record

4. Look at the "Role" field

   • Current role is listed here
   • You change the role selecting the 3 dots next to the Role Field

5. Select a role from the list

   • Common roles: Accountant, Sales Manager, Sales Person, Warehouse Manager, Manager, etc.
   • Choose based on their job responsibility

6. The user now has access to the functionality that role allows

What to do:

• Test that they can log in and access what they need
• If they're missing access to something, you may need to adjust their role
• Advanced permission configuration might require your Business Central administrator

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Part 2: Managing Your User Licenses

You have a limited number of user seats. Here's how to manage them.

Requesting Additional Licenses

When you need more users than your current license count:

1. Contact your Microsoft partner or whoever manages your Business Central subscription

   • Could be your IT department, an MSP, or Microsoft directly
   • Tell them: "We need to increase our Business Central user licenses from X to Y"

2. They'll handle the purchase

   • They'll work with Microsoft to increase your license count
   • This usually takes a few days
   • You'll get a confirmation when it's done

3. Once approved, you can add the new user

   • You're no longer at the seat limit
   • Follow Part 1 above to add them

What to do:

• Plan license requests ahead of time if possible
• Don't wait until you absolutely need someone to request more seats
• Keep your subscription manager informed about upcoming hiring plans

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Part 3: Removing or Deactivating Users

When someone leaves or no longer needs access, remove them properly.

Option A: Deactivate a User (Keep Their Data)

If they might come back or you want to keep records of their access:

1. Go to Administration > Users

2. Find the user

3. Click to open their record

4. Look for a "Disabled" or "Active" checkbox

   • Check "Disabled" or uncheck "Active" (depending on your version)

5. Save the changes

6. They can no longer log in

   • Their user account is inactive
   • Their data stays in the system
   • You can reactivate them later if needed

What to do:

• Use deactivation when someone takes a leave of absence or might come back
• This frees up their license seat

Option B: Delete a User (Remove Completely)

If they're leaving permanently and you want to clean up:

1. Go to Administration > Users

2. Find the user

3. Click to open their record

4. Look for a "Delete" button or option

5. Click it and confirm

6. They're completely removed from the system

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Part 4: Troubleshooting Common User & License Issues

Issue 1: "User Can't Log In"

Possible causes:

1. Their Microsoft 365 account doesn't exist yet
2. They're not added to Business Central yet
3. Their Business Central account is disabled
4. They're using the wrong email address

How to fix:

1. Verify their Microsoft 365 account exists (ask your Microsoft 365 admin)
2. Verify they're listed in Administration > Users in Business Central
3. Check if they're marked as "Disabled"—if so, reactivate them
4. Have them verify they're using the correct email address
5. Have them try a different browser or clear their browser cache

Issue 2: "We're At Our User Limit"

What this means:

• You're trying to add a user but you've reached your license seat limit

How to fix:

1. Deactivate or delete a user you no longer need (Part 3 above)
2. Or request additional licenses (Part 2 above)
3. Once you've freed up a seat or increased your limit, add the new user

Issue 3: "User Has Wrong Permissions"

What this means:

• They can do things they shouldn't, or they can't do things they need to

How to fix:

1. Go to Administration > Users and open their record
2. Review their assigned Permissions Sets
3. If they're missing a Permission Set, click the 3 dots and select the Permission Set
4. If they have the wrong Permission Set, remove it and add the correct one
5. Have them log out completely and log back in for changes to take effect

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Best Practices: Managing Users Well

Here's how to keep your user setup clean and secure:

During Onboarding

1. Create the user account BEFORE their first day

   • Request the Microsoft 365 account from your admin
   • Add them to Business Central
   • Assign their role
   • Test their login before they arrive

2. Document the process

   • Note what role you assigned and why
   • Keep a record of their job responsibilities
   • This helps when onboarding future people

3. Assign them to the right role/permissions from the start

   • Avoid giving them too much access and then removing it
   • Ask their manager what they actually need to do

Ongoing

1. Review users monthly

   • Look at who's active in Administration > Users
   • Remove duplicates or old test accounts
   • Keep your user list clean

2. Update permissions when roles change

   • If someone gets promoted or changes departments, update their role

1. Deactivate instead of delete (unless absolutely necessary)

   • Makes it easier to reactivate someone on leave
   • Keeps your historical data cleaner

When Someone Leaves

1. Do it on their last day

   • Have IT disable their Microsoft 365 account
   • Disable their Business Central account at the same time
   • Don't delete immediately—keep records for a reasonable time

2. Transfer their responsibilities

   • Update their open items to someone else
   • Make notes about what they were working on
   • Assign their access/projects to their replacement

3. Remove data if required

   • Some roles need to clean up sensitive data when they leave
   • Follow your company's data retention policy

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Special Cases

"We Have Consultants or Contractors"

1. They typically get External Accountant or Team Member licenses
2. Set them up the same way as regular users
3. When they leave, deactivate their account (don't delete)
4. They can be reactivated if they come back later

"Multiple People Need Access to the Same Equipment (Like a Warehouse Barcode Scanner)"

1. Use a Device License instead of individual user licenses
2. Anyone who needs that device can log in with the device account
3. You're not paying per person, just for the shared device
4. Coordinate with your Business Central administrator on setup

"User Should Only See Their Region or Department"

1. This requires more advanced permission configuration
2. Contact your Business Central administrator
3. They can set up data filters and field-level security
4. Basic role assignment won't handle this alone

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Still Stuck?

You've worked through all the steps and still have user or license issues? Let's get help.

Have this ready when you reach out:

• What exactly are you trying to do? (Add user, remove user, increase licenses, fix permissions, etc.)
• What error message are you seeing? (Screenshot is helpful)
• How many current users do you have vs. your license limit?
• What role should the new user have?
• If it's a permission issue: What can they currently do, and what should they be able to do?
• When did this problem start?

Submit a Support Ticket with this information, and our team will help you get users set up or fixed.

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Related Articles

• Understanding Business Central Roles and Permissions
• Configuring Security and Access Control
• Managing Microsoft 365 Accounts for Business Central

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Last updated: November 2025