How to upgrade Office 365 Licenses

When you purchase your Office 365 licenses direct from Microsoft (or via a Microsoft Partner under the Advisor model), you can upgrade your Office 365 licenses in the Microsoft Online services portal.

There are three main steps

  1. Purchase the new Office 365 plan
  2. Replace the user’s licenses
  3. Reduce the old licenses or Remove the subscription.

Here’s how to do it.

Purchase the new Office 365 plan

  1. Log into as a Global Administrator or Billing Administrator
  2. Click the App LauncherOpen Office 365 App Launcher
  3. Click the Admin tileClick The Admin Tile
  4. Click Purchase Services on the left menuClick Purchase Services In Office 365 Admin Centre
  5. Find the plan that you want to upgrade some or all of your users to. Then click Buy NowFind The Office 365 Plan To Upgrade To
  6. Order enough user licenses for the users you want to upgrade, and then proceed through the billing steps.Order Office 365 E3 Licenses
  7. Once you’ve purchased the licenses, return to the Admin center to assign them to users. Note that it may take 10 – 20 minutes for the licenses to become available.

Replace users’ Office 365 Licenses

In the Admin center, Click Users, then Active Users.Click Active Users In Office 365 Admin

Upgrade license for one user at a time

  1. Click the userClick Office 365 User To Upgrade
  2. Click Edit under Assigned LicenseClick Edit To Assign Office 365 License
  3. Deselect the current Office 365 plan, and select the new plan you’ve purchased:Select Office 365 Plan To Assign
  4. Once done, skip ahead to Reduce Office 365 Licenses or Cancel Office 365 Subscription.

Upgrade license for multiple users

  1. Select the users you want to upgradeUpgrade Office 365 Licenses For Multiple Users
  2. Click EditBulk Edit Office 365 Licenses
  3. On the Bulk Edit Users‘ Details page, scroll down to NextBulk Edit Office 365 User Details
  4. Click Next again on the Settings PageBulk Edit Office 365 User Access
  5. Use the Assign Licenses page to Replace existing license arrangementsBulk Edit Office 365 Assign Licenses
  6. Choose the new licenses that you’d like to be assigned to these users. Don’t select the old licenses.Choose Office 365 License To Assign In Bulk
  7. Click SubmitSubmit Bulk Edits To Office 365

Removing the old Licenses

Reducing Office 365 Licenses

  1. Under Billing on the left menu, click SubscriptionsClick Billing Under Subscriptions To Cancel Office 365 Subscription
  2. Select your subscription under the Active list, and click Add/RemoveRemove Office 365 Licenses
  3. Under the slide out menu on the right, type in the new number of licenses that you’d like to have and click Submit.Submit Office 365 License Reduction

Cancel an Office 365 Subscription

If you’ve signed up to an Office 365 plan on an annual commitment, and are NOT upgrading your Office 365 plan, cancelling your subscription may incur extra charges. This is called an Early Termination Fee, and is equal to one month’s subscription fee.

The Early Termination Fee won’t apply if you are upgrading all users to a different subscription, are transitioning to a different licensing program, or are changing between Microsoft Partners.

  1. Under Billing on the left menu, click SubscriptionsReduce Office 365 LicensesUnderSubscriptions
  2. Select your subscription under the Active list, and click More ActionsClick More Actions To Cancel Office 365 Subscription
  3. Click Cancel SubscriptionClick Cancel Subscription
  4. Read and understand the Important dates information. Note that in this example, not all users are upgrading, so the Early Termination Fee applies. If you are upgrading all users, the Early Termination Fee will not apply.Read Important Dates
  5. Click Cancel SubscriptionClick Cancel Subscription To Cancel Office 365

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