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Licensing for Dataverse (Dynamics 365)

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Posted on by -Rem-

I work in an organisation that is currently licensing Dynamics HR and Dynamics Finance & Operations for it's users. Now, I am tasked with creating an app using PowerApps to enable people to create Leave Requests on their mobile phones. For this purpose I am looking to access various Dataverse entities coming from HR and F&O (Leave Request entities, systemuser, worker).

I built a quick POC app that is accessing these entities - reading and writing. However the app has a premium designation and my test users were being asked to start a PowerApps trial to use the app. My understanding was that PowerApps that extend functionality of Dynamics 365 and access to Dataverse are covered through the Dynamics licenses the users have. Is that true?

(Quick note: I was running the app on our test environment for D365... might that be related to it and if I was running the app on our prod environment we would not be looking at this licensing issue?)

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Microsoft Dataverse with Power Apps

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Drew Poggemann 9,287 Most Valuable Professional on at

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Hi @-Rem-

As long as you are extending Dynamics 365 within the same D365 environment (https://docs.microsoft.com/en-us/power-platform/admin/powerapps-flow-licensing-faq#dynamics-365). you should have the required licensing for the users. Are these test users licensed for Dynamics 365? They would need to be already licensed users or they will be asked to start a trial. The test environment should be fine as long as the users are licensed for Dynamics 365.

More specifically from the Power Apps Licensing Guide (https://go.microsoft.com/fwlink/?LinkId=2085130&clcid=0x409)

Power Apps use rights included with Dynamics 365 licenses

Limited Power Apps use rights are included within the same environment(s) as the licensed Dynamics 365 application(s) to allow users to customize and extend Dynamics 365 applications. Use of Power Apps capabilities included with Dynamics 365 licenses must be only within the context of the licensed Dynamics 365 application. Further, the specific use rights vary by Dynamics 365 license type.

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-Rem- 30 on at

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Hey Drew,

that makes sense to me. I am not sure if they are licensed properly on the test instance...
However the wording surrounding extending D365 applications is a bit ambiguous to me. The app I built is being launched outside of D365 (i.e. through the PowerApps mobile app on the user's device), it's not "embedded" inside of D365 or anything. Do you have experience with this and know if this might also have an effect?

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Drew Poggemann 9,287 Most Valuable Professional on at

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I have setup multiple separate apps in D365 environments fine. Mostly customer engagement D365 apps. This should not be a problem. The context means it should be related to your data / business functions in that environment.

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