When new users get boarded, after completing user creation in Azure AD, we need to assign
required Office 365 license depends on the nature of the user’s role in your office.
Once you have decided what license and what specific license services that you are going
to apply for new users, then you can simply achieve this need by following the steps mentioned in below image.
- Choose the option “Add to Existing License” to assign license for new users. The “usage location” is must for all new users to assign valid license.
- By default, when you select a license then all the associated services with that license are automatically selected. If you want to limit only particular services to the users, then switch the toggles to the Off position for the services that you don't want to apply.