Group-based licensing is a simple way to automate the distribution of licenses to members of security groups. In this article, we review how the mechanism works and show how to automate operations with PowerShell. Finally, we update the tenant licensing report to include group-based licensing and to highlight duplicate license assignments.
The audit events generated for license assignments to user accounts available in the Azure AD audit log and Office 365 audit log are inconsistent and incomplete. This is certainly true for licenses assigned to accounts through auto-claim policies and group-based licensing, but known gaps exist in the audit records generated in other areas of Office 365 and Microsoft 365 functionality. We think Microsoft needs to pay attention to ensure that auditing works consistently and predictably across all workloads. Once they improve the fit and finish of audit record generation, they can move into other areas, like charging for access to high-value audit events.