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Work Add-Ons are licensed by user tiers, and look only for Enabled users who have Read-Write access rights. To determine how many active users there are on CRM, do an Advanced Find search of the following query:

If one's user tier has been exceeded on the addon license, limit the number of users in Dynamics 365 through Office 365 security groups.

- Prerequisite: must have global administrator rights in the Office 365 Portal- https://portal.office.com

In the Admin Application:

  1. On the home page, Groups
  2. Click on Add a Group
  3. Select the Type as Security Group
  4. And add Members to this Group.
  5. Navigate to Admin Centers->Dynamics 365
  6. Identify the Dynamics CRM instance you want to work with and Click edit
  7. Select the Security Group in the Security Settings.

This will now enable only the users in the Security group to have access to the Dynamics 365 instance.