Usage location isn't allowed (licence assignment)

A licence was not assigned because the user has no usage location or one where the service is not offered.

Why it happens

Some Microsoft services are not available in every country or region. The user's Usage location is empty or set to an unsupported location. If no usage location is set, group-based licensing uses the tenant location.

How to fix it

1. 1

   Step 1

   Set the usage location on the user to the two-letter code of the country where they work (for example AU for Australia).

2. 2

   Step 2

   Remove users in unsupported locations from the licensed group.

3. 3

   Step 3

   Add usage location to your user creation process or migration mapping, then reprocess the licence.

Update-MgUser -UserId user@contoso.com -UsageLocation "AU"

Source

Full guide: Microsoft 365 tenant-to-tenant migration: the complete guide →