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The Cancel License tool allows Neo Agent to reduce the number of license seats through your configured marketplace provider (Pax8, D&H, Ingram Micro, Sherweb, or Microsoft Partner Center).
Ensure users are unassigned from the license before cancelling seats. Unassigning licenses from users is handled by the Microsoft 365 tools (Microsoft Graph API), gated by your M365 licensing permissions.

What It Does

When enabled, the agent can:
  • Reduce seat count for any license SKU
  • Target a specific subscription when your provider has multiple subscriptions for the same license (e.g., separate Monthly and Annual subscriptions)
  • Auto-detect which marketplace provider to use based on the company’s configuration

Subscription Targeting

The agent identifies the exact subscription to modify by calling List License Subscriptions first, which returns the subscription ID, billing term, commitment term, and seat count for each subscription.
The agent always calls List License Subscriptions before cancelling to get the marketplace subscription ID for the target subscription.

Marketplace Provider Auto-Detection

The marketplace provider is automatically determined from the company’s configuration — you no longer need to select it per tool. Neo checks in this order:
  1. Pax8 — if a Pax8 marketplace company ID is configured
  2. D&H — if a D&H marketplace company ID is configured
  3. Microsoft Partner Center — if a Partner Center marketplace ID is configured, or as a fallback when Partner Center credentials are available

Timing the Cancellation

The agent can apply a seat decrease either immediately or at the next renewal date. Use custom instructions to direct the agent based on your preference:
  • Immediately (default) — the seat decrease applies now. Microsoft NCE only allows immediate downsizes within the first 7 days of a term, so this can fail for older subscriptions.
  • Next renewal — the decrease is queued to apply on the subscription’s renewal date. This always works regardless of the NCE 7-day window.
If the agent attempts an immediate decrease and the marketplace rejects it on NCE policy grounds, the tool’s error message instructs the agent to retry with next_renewal. Scheduled-at-renewal is supported via API on Ingram Micro and Microsoft Partner Center. For Pax8, D&H, and Sherweb, the API doesn’t expose this — the agent will instead suggest scheduling the workflow itself to run on the renewal day. The agent can also align the renewal date to the end of the calendar month or to the subscription’s existing anniversary when the change applies (Ingram Micro only in v1).

Settings

SettingDescription
Require technician approvalWhen enabled, the agent sends a Teams approval request before cancelling. Enabled by default.

Tool Dependencies

When you enable this tool, the following are automatically enabled:
  • List Licenses — so the agent can look up available SKUs
  • List License Subscriptions — so the agent can discover subscriptions and get the subscription ID before cancelling
  • Request Technician Approval — when approval is enabled in settings

How to Use

Use as part of offboarding workflows:
After unassigning all licenses from the departing user,
cancel the freed Monthly seats to stop billing immediately.
When cancelling licenses, always cancel Monthly seats first.
Only cancel Annual seats when explicitly requested.