Unused and under-provisioned licence alerts
This article explains two common Sync 365 alerts: Unused Licences and Under-Provisioned Licences.
These alerts help you find Microsoft 365 licence billing issues before they become invoice problems.
What is an Unused Licence alert?
An Unused Licence alert means Sync 365 has detected licences that are available but not assigned to users.
Example:
- Active licences: 10
- Assigned licences: 7
- Available / unused licences: 3
This does not always mean there is a problem. Some MSPs intentionally keep spare licences available. However, it is worth reviewing because unused licences can create unnecessary cost for your customer or for your MSP.
What is an Under-Provisioned Licence alert?
An Under-Provisioned Licence alert means more users appear to have a licence assigned than the active licence count suggests should be available.
This can happen when Microsoft data is temporarily out of sync, when subscriptions are changing, or when there is a mismatch between active licence counts and assigned users.
Why these alerts matter
- Unused licences can mean a customer is paying for licences they are not using.
- Under-provisioned licences can indicate a Microsoft tenant or subscription count issue.
- Both alerts help you review billing before syncing or invoicing the customer.
Common causes of Unused Licence alerts
- A user was offboarded but the licence was not cancelled or reduced.
- A licence was purchased in advance and has not yet been assigned.
- The customer keeps spare licences intentionally.
- A subscription was increased but the extra licences were not used.
- A licence should be excluded from alerting or billing.
Common causes of Under-Provisioned Licence alerts
- Microsoft licence data has not fully refreshed yet.
- A subscription has recently changed quantity.
- A licence assignment change has happened before the subscription count update is visible.
- The tenant has multiple subscription rows for the same licence.
- There is a temporary Microsoft reporting delay.
How to review the alert
- Open the affected company in Sync 365.
- Find the licence shown in the alert.
- Review the active, assigned, and available licence counts.
- Check whether the licence is shown as a combined licence row or split into subscription rows.
- Check recent Microsoft 365 licence changes for the tenant.
- Confirm whether the extra or missing quantity is expected.
What to do with Unused Licence alerts
1. The unused licences are intentional
No immediate action may be needed. If the licence should not generate alerts, consider excluding it where appropriate.
2. The unused licences are not needed
Reduce or cancel the licence quantity in Microsoft where allowed by the subscription term and your billing policy.
For NCE subscriptions, remember that quantity reductions may be restricted outside Microsoft’s allowed cancellation or renewal window.
3. The licence should not be billed
Exclude the licence or subscription row in Sync 365 if it should never be billed or alerted on.
What to do with Under-Provisioned Licence alerts
1. The tenant was recently changed
Wait for Microsoft and Sync 365 data to refresh, then check the alert again.
2. The subscription count is wrong
Check the Microsoft Admin Center or Partner Center to confirm the active subscription quantity.
3. The licence is split into subscription rows
Review each subscription row and confirm whether the quantities add up to the expected total.
If all subscriptions should be billed as one total count, consider using Merge. If different subscriptions need different billing profiles, keep them split and review each row separately.
When to ignore the alert
You may decide not to act immediately if:
- The customer intentionally keeps spare licences.
- A licence change was made very recently.
- You are waiting for Microsoft data to settle.
- The subscription is in a term where reductions are not currently allowed.
Best practice
- Review unused licence alerts before customer billing.
- Use Split/Merge correctly for licences with multiple subscription rows.
- Exclude licences that should never be billed or alerted on.
- Check Microsoft data before assuming the Sync 365 count is wrong.
- Document intentional spare licence quantities for larger customers.
When to contact support
Contact support if:
- The alert remains after Microsoft and Sync 365 have refreshed.
- The licence count in Sync 365 does not match Microsoft.
- The assigned user count appears wrong.
- The alert appears on a licence that should be excluded.
- You cannot explain the difference between active, assigned, and available counts.
When contacting support, include the company name, licence name, screenshots of the licence row, active/assigned/available counts, and any recent Microsoft 365 subscription changes.
Related articles
- Missing Billing Profile alerts
- Split and merge subscriptions
- Global License Exclusions
- License Mapping/Configuration Options
- MS New Commerce Experience 2022