When provisioning users to Microsoft Office 365, the provisioning flow fails with the following error visible in the Okta dashboard:

Automatic provisioning of user <userName> to app Microsoft Office 365 failed: Unable to assign licenses to the user. These Licenses have no available seats: "Office 365 Business - <O365 license name>. These licenses have only suspended (unassignable) seats left: Please fix this on the Tasks Page."

• Microsoft Office 365
• Provisioning

The automatic user assignment fails because there are no free license seats available for Microsoft Office 365. One common reason is that deactivated Microsoft users still keep the licenses.

Follow the steps below to resolve the error:

1. Verify license counts in the Microsoft Office 365 Administration Portal, and confirm that all deactivated users in O365 have had their licenses removed to replenish the counts.
2. Once the impacted license seats are available in O365, the task in Okta can be retried, or alternatively, make a modification to the appuser profile so that a profile push will be triggered to successfully link the users.