Licensing Dynamics F&O 365

Best practices in large companies for ERP usage (headquarters, subsidiaries and licensing)

In large organizations with multiple headquarters and several subsidiaries, where many people are involved in processes such as purchasing, expenses, approvals and postings, how is ERP usage typically organized in day-to-day operations?

From an access and licensing perspective, do all people involved in these processes usually have direct access to the ERP, or are there different participation models? In general, does everyone who accesses the system consume a license, or do companies adopt alternative access approaches for certain roles?

How do large companies balance the need for broad participation across different areas with the optimization of license usage, while still maintaining control, traceability and audit compliance?

I would like to understand how large enterprises work in practice in these scenarios, especially in environments with headquarters and multiple subsidiaries.

Hi @Maria_Alice_Santana

In large organizations, ERP usage is usually a balance between central control and local operations.

Typically:

  • Headquarters owns the ERP setup, policies, and reporting

  • Subsidiaries handle day-to-day work like purchasing, expenses, and local approvals within those rules

From a licensing point of view, not everyone involved needs full ERP access:

  • Core users (finance, procurement) usually have full licenses

  • Managers and occasional users often approve via workflows, email, or light access

  • Many companies use simple portals or apps for requests and approvals instead of giving ERP access to everyone

Most large companies manage cost and control by giving full licenses only to daily users, centralizing finance where possible, and relying on workflows for visibility and audit trails.

In short, not everyone logs into ERP, but everyone is part of the process.

But with an app, wouldn’t they still need an ERP license to use it? Or would the process be that they access the ERP through the app, and a corporate user inserts the data into the system, either via batch upload or using Power Automate?

Hi @Maria_Alice_Santana

Yes, that’s usually how things are managed in large organizations. Let me break it down in a simple way.

For example, you have 700 users who need access to ERP-related data does not mean you need 700 ERP licenses. In most enterprise setups, only users who truly need full ERP functionality are given full ERP licenses.

What we usually recommend for enterprise clients is:

  • ERP licenses for users who work in the system daily and need full access

  • For other users, share the required ERP data using Power Apps

With a Power Apps (or connector) license, selected ERP data can be exposed to Dataverse and then shared through Power Apps. This allows a large number of users to view, submit, or approve data without logging directly into ERP.

This approach:

  • Reduces overall licensing cost

  • Keeps data controlled and secure

  • Still allows wide participation across the organization

Compared to assigning individual ERP licenses to everyone, Power Apps licenses are usually much more cost-effective.

If you need, I can help you set up this arrangement if you find any trouble.