When you try to authenticate to a Microsoft a cloud service such as Office 365, Microsoft Azure, or Microsoft Intune by using a federated account, the authentication is unsuccessful, and one or more of the following issues occur:
At the sign-in prompt, when you try to update the Username field by using a federated user name, the browser address bar contains a URL that resembles the following example, instead of a webpage that includes a "Sign in at <AD FS endpoint name>" link:
After you sign in by using a federated account and you try to access a cloud service resource, such as the Office 365, Outlook Web App, SharePoint Online, or Skype for Business Online (formerly Lync Online), you get the following error message:
If these issues only occur for some user accounts, this indicates that those user accounts are likely set up incorrectly in the on-premises Active Directory environment. In this scenario, one or more of the following items may be set up incorrectly:
The wrong user principal name (UPN) and password are being used.
The UPN isn't updated for user accounts.
In this case, the UPN suffix for each identity-federated account must be updated to reflect the federated domain name. To verify a user account UPN, follow these steps:
On the local Active Directory domain controller, click Start, point to All Programs, click Administrative Tools, and then click Active Directory Users and Computers.
Right-click the user account that you want to change, and then click Properties.
On the Account tab, make sure that the UPN suffix of the federated namespace is listed in the list in the upper-left corner, and then click OK.
Office 365 user account isn't licensed for the Office 365 resource
Access to Office 365 resources for which the user account doesn't have a license is restricted. To check the license status for a user account, follow these steps:
Sign in to the Office 365 portal (https://portal.office.com) by using an Office 365 admin user account. You can use a managed account if it's required.
Click Admin, click Office 365, and then in the left navigation pane, click users and groups.
In the list of users, locate the user accounts that you want to test, and then select Display Name. Check that each user account has the required licensing for the Office 365 resource.
Select the Select all items check box.
If a user account that you want to test isn't listed, Active Directory synchronization may be syncing the account to Azure Active Directory (Azure AD).
Note If the user account has an on-premises mailbox, an Office 365 mailbox isn't created. This specific resource remains unavailable, even when the user account is licensed for Exchange Online.
When a subdomain, such as subdomain.contoso.com, is added before its parent domain, for example contoso.com, the subdomain automatically inherits the parent domain’s federation status. To determine the inheritance status, follow these steps:
Sign in to Office 365 (https://portal.office.com) by using an Office 365 admin user account. You can use a managed account if this is required.
Click Admin, and then in the left navigation pane, click Domains.
In the list of domains, locate the federated subdomain name, and then determine whether the Domain type setting is set to Single Sign-On.
Repeat step 1 to step 3 for the parent domain. If the Domain type setting differs from the subdomain setting, the subdomain has been orphaned from its parent.
Directory synchronization issues are preventing proper user account configuration on-premises from syncing to Azure AD.
Single sign-on (SSO) relies on identical user accounts being represented in both the on-premises Active Directory and in Azure AD. Directory synchronization is responsible for making sure that the same Office 365 user account is created for each on-premises user account. Sign in may fail when directory synchronization doesn't sync correct account settings from the on-premises Active Directory to Azure AD.
To resolve this issue, use one or more of the following methods:
Make sure that the correct UPN and password are used for sign in.
The UPN isn't updated for federated accounts.
For more info about how to resolve this issue, see the following Microsoft Knowledge Base article:
2392130 Troubleshoot user name issues that occur for federated users when they sign in to Office 365, Azure, or Intune
The Office 365 user account isn't licensed for Office 365 resources.
To resolve this issue, use the Office 365 portal to assign the appropriate licenses to the user accounts that require a license.