How to resolve – “License cannot be assigned to a user without a usage location specified.” error when assigning license to guest user in Azure.

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Happy new year to all my blog readers. This is my first blog of the year 2021 and I can’t be more excited to get on with it. And what’s more exciting that to have the blog on Azure.

In this blog I am going to talk about the below scenario.

  • You want to assign license to a guest user from Azure and you encounter ‘License Assignment error’.

If you are not aware of the Guest users in Azure AD B2B, please check out this Microsoft link.

Let’s talk about the scenario. I have a guest user set-up in my Azure AD – “Maria Campbell”. Maria Campbell should be assigned Power Apps license. I navigate to the user and click on ‘Licenses’ tab.

External user license

Click on ‘Assignments’ and then assign Power Apps plan to the guest user.

license assignment to external user - Azure AD

When I try to save the license assignment, I get the following error. The error is quite generic – “License assignments failed“.

License assignment failed

Clicking on the error shall redirect you to the detailed error page.

License cannot be assigned to a user without usage location specified.

Well, the error can occur because of many reasons. But the one we are going to discuss about is the highlighted above – ‘License cannot be assigned to a user without a usage location specified’.

Before we go ahead and fix this issue, we need to understand the reason for this error. The reason is some Microsoft offerings are not available in specific regions because of local laws and restrictions. So unless you specify a usage location for the user, you cannot assign those license offerings which are region specific.

How do I set the location of the user? Well, it’s very easy. Click on ‘Profile‘ tab and then select edit.

Usage location user profile in azure

Navigate to Settings and then specify the usage location. Once specified, save changes.

Usage location field of guest user in Azure AD

That’s it. Depending on the usage location you provide and whether the Microsoft service is available in that region, you should be able to successfully assign the license to the user.

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Hope this helped!

Debajit Dutta
Business Solutions MVP