Adding a New User to Microsoft Dynamics 365 Online Organization – Something’s Changed

I recently noticed that the procedure for adding users to Microsoft Dynamics 365 Online Organization does not work anymore.
Adding a user via Office 365 Administration and granting a license did not add the user to Microsoft Dynamics 365 Organization no matter how long I waited.
After some research, I found out that an additional step was added to the procedure: you need to associate the Office 365 created user to the target organization via the Power Platform Admin portal.

So here is the whole procedure, step by step:

  • Add an Office 365 user
In your Microsoft Dynamics 365 organization, click Advanced Setting
Navigate to Settings -> Security -> Users and click New
Click Add and License Users
In Microsoft 365 Admin Center Active users list, click Add A user
Fill in the user details and click Next
Assign a Dynamics 365 CE license to the user and click next -> Click next -> Finish adding -> Close
  • Associate Office 365 user to target Organization
Navigate to and select the target environment (organization)
Click Settings
Click Users + permissions -> Users
Note the newly Added user. If your new user does not appear, click Add user and look it up
Click the new user to open the user’s record in Dynamics 365.
Click Assign Roles to assign a Security Role and to complete the procedure