User Identity Management
SC-300 Exam Alignment
SC-300
Implement and manage user identities: Create and configure user accounts, manage user properties including Usage location, distinguish Member from Guest users, perform bulk operations, and manage the deleted users recycle bin.
- Know the mandatory fields for creating a user account and which optional fields are required for certain functions (Usage location for licence assignment)
- Distinguish cloud-only users from hybrid synced users — synced attributes cannot be modified in Entra ID
- Know the difference between Member and Guest user types and their directory access rights
- Understand bulk user operations — bulk create, bulk invite, bulk delete — and the CSV template format
- Know that deleted users are soft-deleted for 30 days and can be restored within that window
👤 User Types in Microsoft Entra ID
Entra ID contains two primary user types with different origins and access rights:
| Property | Member User | Guest User |
|---|---|---|
| Origin | Created in your tenant (cloud-only) or synced from on-premises AD | External user invited via B2B collaboration — authenticates with their home organisation or personal account |
| UserType value | Member | Guest |
| UPN format | user@yourdomain.com | user_externaldomain.com#EXT#@yourtenant.onmicrosoft.com |
| Directory access | Can browse the directory by default (see users, groups) | Restricted by default — limited directory read access |
| Licence required | Yes — must be assigned a licence for M365 services | External users may access guest-enabled apps without a licence in your tenant (licensing is in their home tenant) |
| Attribute management | All attributes manageable in Entra ID (unless synced from on-prem) | Limited — core attributes come from the user's home directory |
💡 Cloud-Only vs Synced Users
- Cloud-only users: Created directly in Entra ID. All attributes are editable in the portal or via Graph PowerShell
- Synced users: Originated in on-premises AD and synced to Entra ID via Microsoft Entra Connect. Key identity attributes (DisplayName, UPN, Department, etc.) can only be modified in on-premises AD — the sync will overwrite any changes made in Entra ID. You can identify synced users by the On-premises sync enabled: Yes indicator on their profile
🆕 Creating a User Account
Entra admin center › Identity › Users › All users › + New user
Usage location — must be set before a licence can be assigned
| Field | Required? | Notes |
|---|---|---|
| User principal name (UPN) | ✅ Mandatory | Must be unique in the tenant. Format: user@domain.com. Uses a verified domain or the .onmicrosoft.com domain |
| Display name | ✅ Mandatory | Appears in address books, Teams, and other Microsoft 365 services |
| Password | ✅ Mandatory | Auto-generate (recommended) or set manually. Can require change at first sign-in |
| Usage location | ⚠️ Required for licensing | Country/region where the user will use the service. Must be set before assigning any Microsoft 365 licence. Legal requirement — some services restricted by country |
| First name / Last name | Optional | Populates the GivenName and Surname attributes |
| Job title / Department | Optional | Used for dynamic group rules and HR integration |
| Manager | Optional | Used for org chart, approval workflows, and delegation |
| Mobile / Office phone | Optional | May be used as an MFA method if populated and user registers it |
👥 Bulk User Operations
Bulk operations allow administrators to create, invite, or delete many users at once using a CSV file. The portal provides a downloadable template that must be filled out and uploaded.
Entra admin center › Identity › Users › All users › Bulk operations
| Bulk Operation | What It Does | Required CSV Columns |
|---|---|---|
| Bulk create | Creates multiple new Member user accounts at once | Name [displayName], User name [UPN], Initial password, Block sign in (Yes/No), Usage location, Job title, Department |
| Bulk invite | Sends B2B invitations to multiple external email addresses | Email address [invitedUserEmailAddress], Redirection URL, Send invite message (Yes/No) |
| Bulk delete | Deletes multiple user accounts by UPN (soft-delete, 30-day recycle bin) | User principal name |
| Download users | Exports current user list to CSV for audit or offline editing | N/A — output only |
⚠️ Bulk Create CSV Requirements
Always download the CSV template from the portal before filling it in — Microsoft's template includes required formatting (e.g., "Yes"/"No" for boolean fields, ISO country codes for usage location). The file must be saved as UTF-8 encoded CSV. The header row must not be modified. Errors in any row will cause that row to fail while others succeed — review the bulk operation results page after upload.
🗑️ Deleted Users — 30-Day Recycle Bin
When a user is deleted in Entra ID, they are soft-deleted and moved to the Deleted users view (Identity → Users → Deleted users). The account is retained for 30 days before being permanently auto-deleted.
| State | What It Means | Actions Available |
|---|---|---|
| Active user | Normal user account — can sign in (if sign-in is enabled) | Edit properties, assign licences, reset password, delete |
| Deleted user (within 30 days) | Soft-deleted — UPN and licences released. Cannot sign in. Still visible in Deleted users view | Restore (within 30 days) or permanently delete now |
| Permanently deleted | User removed from directory entirely — cannot be recovered | None — must recreate if needed |
✅ What Happens When You Restore a Deleted User
- The user account is restored with the same object ID and GUID — important for audit log continuity
- Group memberships are restored
- Licences are NOT automatically reassigned — must be reassigned manually after restore
- The UPN is restored to its previous value (if not taken by a new user in the meantime)
- Manager, department, and other profile attributes are restored
🔒 Account Sign-In State
An administrator can block a user's sign-in without deleting the account. This is useful for employees on leave, during offboarding review periods, or when investigating suspicious activity. A blocked user cannot sign in but the account remains in the directory with all its properties and group memberships intact.
Connect-MgGraph -Scopes 'User.ReadWrite.All' # Create a new user with required properties \$passwordProfile = @{ Password = 'TempPass@2024!' ForceChangePasswordNextSignIn = \$true } New-MgUser -DisplayName 'John Smith' -UserPrincipalName 'jsmith@techcareers.in' -MailNickname 'jsmith' -AccountEnabled \$true -PasswordProfile \$passwordProfile -UsageLocation 'GB' # Get a user and check their properties Get-MgUser -UserId 'jsmith@techcareers.in' | Select-Object DisplayName,UserPrincipalName,UsageLocation,AccountEnabled # Set Usage location (required before licence assignment) Update-MgUser -UserId 'jsmith@techcareers.in' -UsageLocation 'GB' # Block sign-in without deleting account Update-MgUser -UserId 'jsmith@techcareers.in' -AccountEnabled \$false # Soft-delete a user (30-day recycle bin) Remove-MgUser -UserId 'jsmith@techcareers.in' # List soft-deleted users in the recycle bin Get-MgDirectoryDeletedItemAsUser | Select-Object DisplayName,UserPrincipalName,DeletedDateTime # Restore a soft-deleted user within 30 days Restore-MgDirectoryDeletedItem -DirectoryObjectId '<object-id-of-deleted-user>'
💡 Best Practices
- Always set the Usage location when creating a user — make it a standard step in your provisioning process. Licence assignment will fail without it, and fixing it after the fact wastes time in bulk provisioning scenarios
- Use block sign-in rather than immediate deletion during offboarding — preserve the account for 30+ days to allow access to mailbox data, OneDrive files, and audit investigation before permanently removing it
- For bulk user creation, always download the current CSV template from the portal rather than reusing an old one — Microsoft updates the template schema
- Store the bulk operation results file after each bulk create — it shows per-row success/failure and error messages, essential for troubleshooting partially completed operations
- Never modify attributes of synced users in Entra ID — changes will be overwritten by the next sync cycle from on-premises AD. Always make changes at the on-premises AD source
🎓 Interview Q&A
An administrator creates 50 new user accounts using bulk create. After uploading the CSV, only 43 accounts were created and 7 failed. What is the most likely cause and where should the administrator look to diagnose which accounts failed?
An employee leaves the company. HR instructs IT to immediately remove their access but preserve their email and OneDrive data for 30 days for legal review. What is the correct action?
A Microsoft 365 administrator tries to update the Department attribute of a synced user in the Entra admin center portal. After saving, the change reverts to the old value within 30 minutes. What is causing this?
A user account was permanently deleted from Entra ID 45 days ago. A manager now requests it be restored. What should the administrator communicate?
An invited external user (guest) from a partner company needs to access a SharePoint document library. The administrator wants to check the guest's Entra ID user type. How can the guest be identified as a Guest vs Member in the directory?