Bulk Assign Microsoft 365 Licenses Using PowerShell

Assigning licenses one-by-one from the Microsoft 365 admin center is inefficient — especially during onboarding, migrations, or tenant setup.

In this guide, we’ll use Microsoft Graph PowerShell to bulk assign the DEVELOPERPACK_E5 license using its:

• SkuId: c42b9cae-ea4f-4ab7-9717-81576235ccac
• SkuPartNumber: DEVELOPERPACK_E5

This script uses the correct Set-MgUserLicense structure and avoids common Graph errors.

I) The Script

Step 1: Prepare the CSV File

Create a file named: UsersToLicense.csv with the following format:

UserPrincipalName
john.doe@yourtenant.onmicrosoft.com
jane.smith@yourtenant.onmicrosoft.com
alex.wilson@yourtenant.onmicrosoft.com
                            

✅ Header must be UserPrincipalName
✅ Use full UPN (not display name)
✅ Save it with .csv extension

Step 2: Bulk License Assignment Script

                                
# Connect to Microsoft Graph
Connect-MgGraph -Scopes User.ReadWrite.All, Organization.Read.All

# Define License SKU ID (DEVELOPERPACK_E5)
$SkuId = "c42b9cae-ea4f-4ab7-9717-81576235ccac"

# Import CSV
$Users = Import-Csv "C:\Path\UsersToLicense.csv"

foreach ($User in $Users) {

    try {
        Write-Host "Assigning license to $($User.UserPrincipalName)..." -ForegroundColor Cyan

        Set-MgUserLicense -UserId $User.UserPrincipalName `
            -AddLicenses @(
                @{
                    SkuId = $SkuId
                }
            ) `
            -RemoveLicenses @()

        Write-Host "Successfully assigned license to $($User.UserPrincipalName)" -ForegroundColor Green
    }
    catch {
        Write-Host "Failed to assign license to $($User.UserPrincipalName)" -ForegroundColor Red
        Write-Host $_.Exception.Message
    }
}
                                
                            

II) How the Script Works

Let’s break this down.

1. Connect-MgGraph
   Connect-MgGraph -Scopes User.ReadWrite.All, Organization.Read.All

We request:

• User.ReadWrite.All → Required to modify user licenses
• Organization.Read.All → Required to read SKU details

You must sign in with:

• Global Administrator
  OR
• License Administrator
2. Define the SKU ID

$SkuId = "c42b9cae-ea4f-4ab7-9717-81576235ccac"

This identifies the DEVELOPERPACK_E5 license.

3. Import CSV

$Users = Import-Csv "C:\Path\UsersToLicense.csv"

Each row becomes an object accessible as:

$User.UserPrincipalName

4. Assign License Using Set-MgUserLicense

Set-MgUserLicense -UserId $User.UserPrincipalName `
    -AddLicenses @(
        @{
            SkuId = $SkuId
        }
    ) `
    -RemoveLicenses @()
                                

Important details:

• -AddLicenses must be a hashtable array
• SkuId must be GUID format
• -RemoveLicenses must be explicitly defined

NOTE: -RemoveLicenses @() Is Mandatory

Even if you're not removing licenses, you must include:

-RemoveLicenses @()

If omitted, you may encounter:

Cannot convert the literal 'System.Collections.Hashtable' to the expected type 'Edm.Guid'

This is one of the most common Graph PowerShell licensing errors.

Always include it.

NOTE 2: Validate SKU Before Running

Before assigning licenses, verify the SKU exists in your tenant:

Get-MgSubscribedSku | Select SkuId, SkuPartNumber

Confirm:

• SkuPartNumber = DEVELOPERPACK_E5
• SkuId = c42b9cae-ea4f-4ab7-9717-81576235ccac

Never blindly copy SKU IDs between tenants.

Required Graph API Permissions

Your account must have:

Azure AD Role: Global Administrator or License Adminstrator

Graph Scopes: User.ReadWrite.All or Organization.Read.All

Without these, you’ll receive authorization errors.

III) Further Enhancements

Here are production-ready improvements you can implement.

1. Skip Already Licensed Users
   Avoid duplicate assignment:

$UserDetails = Get-MgUser -UserId $User.UserPrincipalName -Property AssignedLicenses

if ($UserDetails.AssignedLicenses.SkuId -contains $SkuId) {
    Write-Host "$($User.UserPrincipalName) already has license. Skipping." -ForegroundColor Yellow
    continue
}
                            

2. Export Success/Failure Report

Capture results into an array:

$Results = @()

# Inside foreach loop:
$Results += [PSCustomObject]@{
    UserPrincipalName = $User.UserPrincipalName
    Status = "Success"
}

# Export
$Results | Export-Csv "C:\Path\LicenseAssignmentReport.csv" -NoTypeInformation
                            

Useful during onboarding of 100+ users.

3. Assign License with Disabled Service Plans

If you want to disable specific services:

-AddLicenses @(
    @{
        SkuId = $SkuId
        DisabledPlans = @("SWAY", "YAMMER_ENTERPRISE")
    }
)
                            

This is helpful in controlled environments.

4. Add License Availability Check

Before assignment:

$Sku = Get-MgSubscribedSku | Where-Object {$_.SkuId -eq $SkuId}

if ($Sku.PrepaidUnits.Enabled -le $Sku.ConsumedUnits) {
    Write-Host "No available licenses." -ForegroundColor Red
    break
}
                            

Prevents runtime failures.

IV) Possible Errors & Solutions

Error	Cause	Solution
Edm.Guid Conversion Error	Cannot convert the literal 'System.Collections.Hashtable' to the expected type 'Edm.Guid' -RemoveLicenses parameter missing.	Always include: -RemoveLicenses @()
Insufficient Privileges	Insufficient privileges to complete the operation Missing Graph scopes or role permissions.	Reconnect with: Connect-MgGraph -Scopes User.ReadWrite.All, Organization.Read.All Ensure account is License Administrator or Global Admin and the Graph API permission have been given admin consent.
License Not Found Invalid SKU ID	Wrong SKU ID or license not available in tenant.	Run: Get-MgSubscribedSku | Select SkuId, SkuPartNumber Verify before running bulk script.
No Available Licenses LicenseLimitExceeded	All purchased licenses are consumed.	Purchase additional licenses or free unused ones.

Conclusion

Bulk license assignment using Microsoft Graph PowerShell is: i) Faster than admin center, 2)Ideal for onboarding, 3) Migration-friendly, 4) Automation-ready and 5) Fully scriptable.

The key takeaways from this guide: 1) Always include -RemoveLicenses @(), 2) Validate SKU before running, 3) Use correct Graph scopes and 4) Handle errors properly.

For Microsoft 365 administrators managing medium to large tenants, this approach becomes essential — especially when combined with automated user provisioning workflows.