Currently, when a user is deleted in Entra ID (Azure AD), their Dynamics 365 license remains assigned unless removed manually. This creates unnecessary license costs and administrative overhead.

We propose an automated mechanism that detects the deletion of a user in Entra ID and automatically unassigns all associated D365 licenses.

Benefits:

• Prevents license waste
• Improves license management efficiency
• Reduces manual cleanup tasks
• Ensures compliance with user lifecycle policies

This feature would be especially valuable in hybrid or large enterprise environments with frequent user changes.