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License Modification

The License Modification task allows you to:

Assign selected licenses: Append the licenses and services selected to the existing license. Selecting this option will assign the selected license or service if it has not already been assigned.
Remove selected licenses: Remove only the selected licenses and services.
Modify selected licenses: Replace the licenses and services selected with the existing license. If selected, licenses that haven't been assigned yet will be added.
Remove all licenses: Removes all the licenses associated with the selected users.
Replace all licenses: Replaces all the existing licenses with the selected license or service.

Follow the below steps to modify licenses:

Go to Management > License Management > License Modification.
Choose the Microsoft 365 tenant and the Virtual Tenant (optional) of the users for which you want to assign, remove, replace, or modify the license.
Choose the action you wish to perform from the Assign / remove licenses drop-down.
If you want to assign, remove, or modify certain licenses, choose them from the Select Licenses pop-up window.
To remove all licenses, follow steps 1 and 2.
To replace all the licenses, follow steps 1, 2 and 3.
The license you select from the Select Licenses pop-up window will replace all the other licenses if you choose to replace all of them.
Select the users by either entering their names into the search bar or importing a CSV file containing the user details.
From the list of users, select the ones to which you want to apply the changes.
Click Apply.