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The Cancel Microsoft License tool allows Neo Agent to reduce the number of license seats through your configured marketplace provider (Pax8, D&H, or Microsoft Partner Center).
Ensure users are unassigned from the license before cancelling seats. Use Unassign Microsoft Licenses first to free up seats if needed.

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What It Does

When enabled, the agent can:
  • Reduce seat count for any Microsoft 365 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

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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.

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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

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Settings

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

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Tool Dependencies

When you enable this tool, the following are automatically enabled:
  • List Microsoft 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

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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.