> ## Documentation Index
> Fetch the complete documentation index at: https://www.docusnap.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Finding Unused Licenses

> Record a Microsoft 365 contract, assign the licenses to users and read off in the cost analysis how much is paid for unoccupied slots.

We record a contract with one position, assign the paid units to users and
read off in the cost analysis how much of it stays unused.

**Prerequisite:** assets that units can be assigned to — from the scan or
created manually.

## Starting point

Docusnap Sports GmbH runs Microsoft 365 E3: 512 licenses, billed yearly. The
contract exists as a PDF, and the invoice goes through accounting. Nobody
knows how many licenses are occupied.

## 1. Record the contract

Under *ITAM › Manage Costs*, *Costs* opens the *Record Costs* wizard: *Basics*,
*Type*, *Details*, *Additional Info*, *Summary*.

<Steps>
  <Step title="Fill in the basics">
    *Name*: *Microsoft 365 E3 – Annual License*. We leave *Contract Number*
    and *Responsible* empty.
  </Step>

  <Step title="Choose the type">
    Cost type *Subscription*, category *Software*. Only this combination lets
    us choose the unit in the next step.
  </Step>

  <Step title="Fill in the details">
    Unit *Per User* — licenses hang on people. *Quantity* 512, *Unit Price*
    per year, *Start Date*, *End Date*, *Billing Cycle* *Yearly*.
  </Step>

  <Step title="Check the summary">
    The note names the number of billing periods that will be created and
    says: "Asset assignment happens separately." *Record Costs* creates the
    entry and opens it as a tab.
  </Step>
</Steps>

<Warning>
  Unit, quantity, term and billing cycle cannot be changed after recording.
  Check them in the summary.
</Warning>

<Note>
  The billing periods result from quantity and term: with yearly billing, one
  period per billing year. Each period can be assigned and evaluated
  individually.
</Note>

## 2. Assign the licenses

<Steps>
  <Step title="Open the billing period">
    Tab *Billing Periods*. We open the current period with status *Open*.
  </Step>

  <Step title="Select the position">
    The position has type *Assignable* and a utilization of zero. At the end
    of the row: *Assign*.
  </Step>

  <Step title="Select users">
    The *Assign Units* dialog shows people — the unit *Per User* hides
    devices. We select users through search, type filter and checkboxes. The
    capacity bar shows the free slots.
  </Step>

  <Step title="Assign">
    The footer names the new occupancy and the number of assignments. After
    assigning, *Assigned* rises, *Free* falls, and *Unused Budget* shows the
    amount for the free slots.
  </Step>
</Steps>

<Warning>
  An assignment applies to all future, not yet finalized periods, until it is
  removed. Users who leave must be removed actively.
</Warning>

## 3. Read the result in the cost analysis

<Steps>
  <Step title="Open the cost analysis">
    *ITAM › Cost Analysis*. Period *12M*.
  </Step>

  <Step title="Tab Optimization">
    | Figure | Meaning |
    | - | - |
    | *Unused Budget* | amount for unoccupied slots, per month and per year |
    | *Affected Costs* | number of entries affected |
    | *Unused Licenses* | number of free units, with their share |
    | *Avg Utilization* | average occupancy, target above 90 % |
  </Step>

  <Step title="Table Unused Costs">
    The contract stands with *Utilization*, *Unused / Month* and *Unused /
    Year* — the amount for unoccupied licenses.
  </Step>

  <Step title="Optimization recommendations">
    Below that the optimization recommendations, rated as *Note*, *Warning*
    or *Critical*, with a figure and a course of action.
  </Step>
</Steps>

<Note>
  Without an assignable position, the figures of *Optimization* show no
  values. The assignment is the precondition for the evaluation.
</Note>

## Result

* **What are we paying for?** The contract stands in the system with
  position, quantity, term and billing cycle. The cost analysis carries it
  under *Current Monthly Cost* and *Yearly Cost (Projected)*.
* **Where are we paying for the unused?** *Unused Budget*, *Unused Licenses*
  and *Avg Utilization* quantify the free slots per contract.

At the next contract renewal, the quantity is substantiated, not estimated.

## Next steps

[Recording Costs](/docs/en/itam/capture-costs) · [Allocating Costs](/docs/en/itam/cost-allocation)


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