While the information is included in the Dynamics 365 Licensing Guide it's as everything else with licensing in D365 very confusing. So let's demystify this.

• The subscription for a Dynamics 365 product includes a base default capacity.

• Each BASE user license accrues additional database and file capacities.

• A minimum of a one-year subscription is required.

• Capacity is pooled across a single tenant.

• Additional capacity can be bought at any time and remains a part of the subscription for the remainder of the subscription term.

Please note that this article is for online installations only. On-premise storage is your own and not affected by these entitlements.

Standard Storage Entitlements

Database Storage - relational database capacity for all storage in Production, Non-production, Reporting, and Entity Store databases:

• Included in Tenant: 60 GB

• Operations Accrued: 4 GB (per base user license)

• Activity Accrued: 375 MB

• Device Accrued: 600 MB

File Storage - stores attachments to notes or emails, which may include documents, image files, videos, PDF files, and other crucial files, and is applicable for all products that have storage requirements outside of Dataverse:

• Included in Tenant: 40 GB

• Operations Accrued: 4 GB (per base user license)

• Activity Accrued: 1.0 GB

• Device Accrued: 1.6 GB

Sandbox Add-ons Storage Entitlements

Database Storage:

• Tier 2, 3, 4 and 5: 10 GB

File Storage:

• Tier 4 and 5: 128 MB per full user license

As an example of your database storage entitlement if you have the minimum number of licenses (25).

• • 40 GB base with the license

  • 10 base user licenses (5 Finance + 5 SCM) 4 GB x 10 = 40 GB

  • 15 activity licenses (mix of Finance and SCM)  375 MB x 15 = 5.49 GB

You will then have a database storage entitlement of 60 GB + 40 GB + 5.49 GB = 105.49 GB.

You can see what your entitlements and consumption are in PPAC at Licensing > Capacity > Summary (the ones for Finance and operations Database and File).

Things to Watch Out For

Dataverse

• Storage IS charged extra

• F&O storage in Dataverse is not negligible

• Growing number of use cases for Dataverse are not free

  • D365CE

  • D365CE to D365F&O integration

  • D365F&O Archiving

  • D365F&O to Fabric and Synapse Link

• Check with your sales responsible/licensing provider ASAP

In case you need to dive deeper here are some useful links for your reference at the time of this writting:

• https://learn.microsoft.com/en-us/power-platform/admin/finance-operations-storage-capacity

• https://cdn-dynmedia-1.microsoft.com/is/content/microsoftcorp//microsoft/bade/documents/products-and-services/en-us/bizapps/Dynamics-365-Licensing-Guide-August-2025.pdf