I am billing extra for more than months now

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.

1. Open Microsoft 365 admin center.
2. Go to Billing > Your products.
3. Select the Microsoft 365 Business subscription.
4. Select Remove licenses.
5. Under New quantity, enter the total number of licenses that you now require—not the number being removed.
6. 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^

References

1. Step 6 - Remove and delete a Microsoft 365 for business license from a former employee
2. Delete a user from your organization
3. Buy or remove licenses for a Microsoft business subscription
4. How to investigate a billing charge from Microsoft | Microsoft Support