Everything You Need to Know About Device Licenses in Business Central

| Reading Time: 6 minutes

Navigating the intricacies of Microsoft Dynamics 365 Business Central Device Licenses can feel overwhelming, especially when the available resources often address only fragments of the broader picture. This guide is here to change that—offering an end-to-end exploration of device licenses and their optimal usage. Whether you’re seeking clarity on licensing rules or technical configurations, we’ve got you covered. By the end of this article, you’ll understand device licenses and discover how VLC Solutions can elevate your Business Central journey.

Understanding Business Central Device Licenses
Device licenses provide cost-effective options for businesses with shared workstations, such as those in warehouses, shop floors, or point-of-sale (POS) operations. Unlike user-based licenses, device licenses allow multiple individuals to log in using the same device under a single license, simplifying access and reducing costs.

Key Licensing Insights
● No Assignment Required: Unlike user licenses, device licenses remain unassigned. They are allocated to a tenant and consumed whenever a device accesses Business Central.
● Comparable Functionality: Device licenses technically allow users to perform most tasks that a full license can. However, Microsoft has outlined specific use cases to ensure compliance.
● Concurrent Usage: Each device session consumes a license, making planning essential based on the number of devices in use.

Device License Limitations
While versatile, device licenses have clear boundaries. Here’s what you should know:

  1. First User Login Restriction
    A device user cannot be the first to log into Business Central. An administrator, full user, or external accountant must complete the initial system setup.
  2. Concurrent Usage Rules
    Background tasks like scheduled jobs consume licenses, reducing availability for active users. Avoid running jobs as device users to maintain operational efficiency.
  3. Defined Scenarios for Use
    Device licenses are intended for specific roles such as POS, warehouse, or shop floor operations. Using them beyond these scenarios violates Microsoft’s guidelines, even if technically feasible.
  4. Limited Scheduling Support
    While device users can now schedule tasks, doing so may unintentionally consume licenses that could otherwise support active device users.

Configuring Device Licenses: Step-by-Step
Effective setup ensures seamless operation within licensing limits. Here’s how to configure device licenses:

  1. Create a Security Group in Azure
    ● Log into portal.azure.com and navigate to Microsoft Entra.
    ● Go to Groups and create a new group named Dynamics 365 Business Central Device Users.
    ● Add the relevant device users as members.
  2. Pro Tip: The group name must be exact, including capitalization and spacing. Any discrepancy will cause the setup to fail.
  3. Synchronize Users in Business Central
    ● Use the “Update users from Microsoft 365” option in Business Central to sync the Azure group with your environment.
    ● Assign necessary permissions to the synced users.
  4. Log Device Usage
    ● Maintain a record of devices using the Devices Table in Business Central. While not mandatory, this aids compliance during audits.

Scenario-Based Q&A
To provide clarity, here are some frequently asked questions regarding device licenses:

  1. What if multiple warehouses share licenses?
    Licenses are tenant-wide and concurrent. Ensure each active device has a dedicated license to avoid conflicts.
  2. Can normal users log into devices with a device license?
    Yes, but they will use their assigned user license rather than consuming a device license.
  3. Can device licenses support out-of-scope activities?
    While technically possible, it’s against compliance guidelines to use device licenses for unapproved scenarios.
  4. How do device licenses differ in on-premises setups?
    On-premise environments often use shared credentials, limiting traceability. In SaaS, individual logins ensure better accountability and compliance.

Boosting Business Central with VLC Solutions
At VLC Solutions, we specialize in ensuring organizations unlock the full potential of Microsoft Dynamics 365 Business Central. Whether you’re implementing device licenses for cost efficiency or optimizing workflows across warehouses and shop floors, our tailored solutions deliver unmatched value.

From expert consultations to hands-on support, VLC Solutions ensures that your Business Central setup meets compliance standards and drives your business forward. For more tailored advice and hands-on assistance, let VLC Solutions be your guide in optimizing Business Central operations. Want to dive deeper into device licensing or need help with your setup? Contact VLC Solutions today!