Microsoft 365 features that help users manage their subscriptions, account settings, and billing information.
Removing an unused user does not automatically stop its license charge; unassign the license and then reduce the purchased license quantity under Billing > Your products.
Remove the inactive users or their licenses
Before proceeding, preserve any email or OneDrive files that the organization still needs. After a license is removed, the user’s data is normally retained for 30 days and can then be permanently deleted, except for SharePoint documents.^1^
Choose the appropriate action:
- Keep the account but remove its license:
Go to Microsoft 365 admin center > Billing > Licenses, select the product, select the unused users, and choose Unassign licenses > Unassign. - Delete the account completely:
Go to Users > Active users, select the user, choose Delete user, and complete the options for the user’s email, OneDrive data, and license.
Do not delete an account that has been converted to a shared mailbox. Shared mailboxes can remain without a license, but the underlying account is still required. Removing a license from an account used for email forwarding stops forwarding and deactivates its mailbox.^2^
Reduce the quantity you are paying for
Unassigning or deleting users only makes licenses available; it does not necessarily reduce the number purchased.
- Open Microsoft 365 admin center.
- Go to Billing > Your products.
- Select the Microsoft 365 Business subscription.
- Select Remove licenses.
- Under New quantity, enter the total number of licenses that you now require—not the number being removed.
- Select Save.
For example, if the subscription has 20 licenses and 5 are no longer needed, enter 15. All licenses being removed must first be unassigned.^3^
If “Remove licenses” is unavailable
Check Billing > Your products > subscription details > Purchase channel:
- Microsoft Customer Agreement (MCA): Licenses can generally be removed only within seven days after purchase or renewal. Outside that window, the reduction takes effect at the next renewal date shown on the subscription page.
- Microsoft Online Subscription Agreement (MOSA): The license quantity can be reduced from the subscription details page, with billing adjustments applied to the next invoice.
- Reseller/CSP: Contact the reseller shown under Purchase channel; Microsoft’s admin center cannot directly reduce partner-purchased licenses.
- Prepaid/product key: Licenses cannot be removed during the current prepaid term. Renew using a product key for the lower quantity.^3^
The account needs the appropriate permissions. MCA subscriptions require a Billing account owner/contributor or Billing profile owner/contributor; MOSA subscriptions require at least Billing Administrator.^3^
Charges already incurred
Reducing the quantity prevents or schedules future charges according to the subscription’s billing agreement; it does not automatically resolve charges from previous months. For a review of prior invoices or any possible billing adjustment, open Help & support in the Microsoft 365 admin center, describe the unwanted license charges, and select Contact Support when offered.^4^
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