To assign a license that contains Outlook Customer Manager error when creating a new user

Note

Outlook Customer Manager has been retired in June 2020. You won't be able to use Outlook Customer Manager after June 2020, but you'll be able to export or delete your data.).

Original KB number:   3209493

Symptoms

In Microsoft 365, when you try to create a new user without an Exchange Online license, you receive the following error message:

To assign a license that contains Outlook Customer Manager, you must also assign one of the following service plans: Exchange Online (Plan 2), Exchange Online (Plan 1).

Cause

This issue occurs because Outlook Customer Manager is enabled for the new user. However, Outlook Customer Manager is dependent on the user also having an Exchange Online license.

Workaround

To work around this issue, disable Outlook Customer Manager and Exchange Online for the Microsoft 365 account. To do this, follow these steps.

Note

Azure AD and MSOnline PowerShell modules are deprecated as of March 30, 2024. To learn more, read the deprecation update. After this date, support for these modules are limited to migration assistance to Microsoft Graph PowerShell SDK and security fixes. The deprecated modules will continue to function through March, 30 2025.

We recommend migrating to Microsoft Graph PowerShell to interact with Microsoft Entra ID (formerly Azure AD). For common migration questions, refer to the Migration FAQ. Note: Versions 1.0.x of MSOnline may experience disruption after June 30, 2024.

  1. Connect to Exchange Online by using remote PowerShell. For more information, see Connect to Exchange Online PowerShell.

  2. Run the following command to retrieve the Microsoft 365 AccountSkuID:

    Get-MsolAccountSku
    
  3. Run the following command, where <SKU_ID> is the AccountSkuID that you obtained in step 2:

    $LO = New-MsolLicenseOptions -AccountSkuId <SKU_ID> -DisabledPlans "EXCHANGE_S_STANDARD", "O365_SB_Relationship_Management"
    
  4. Run the following command, where <TARGET_USER_ADDRESS> is the email address of the user.

     Set-MsolUserLicense -UserPrincipalName <TARGET_USER_ADDRESS> -LicenseOptions $LO
    

Still need help? Go to Microsoft Community.