Module 2: User Identity Management

🎯 Entra ID Course · Module 2 of 8

User Identity Management

SC-300
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
Exam Tip: The Usage location field is a common exam topic. A user must have a Usage location set before a Microsoft 365 licence can be assigned to them. This is because some services are not available in all countries due to legal or compliance reasons. Without it, licence assignment will fail or be blocked.
Every identity in Microsoft Entra ID is represented as a user object. Understanding how to create, configure, and manage user accounts — and knowing the important distinctions between user types and account properties — is foundational for any Entra ID administrator. This module covers the full user lifecycle from creation to permanent deletion.

👤 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
Entra
Microsoft Entra admin center
|
Identity › Users › New user
🏠 Home
👤 Identity
Users
Groups
Roles & admins
🛡️ Protection

Create new user — Required fields

jsmith@techcareers.in

John Smith

Auto-generate ✓  |  Require change at next sign-in ✓

⚠ Important — Optional but required for licensing:
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.

PowerShell — User Management via Microsoft Graph

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

Q: A help desk engineer tries to assign a Microsoft 365 E3 licence to a newly created user but gets an error saying the user must have a usage location set. What is the usage location and why is it required?
The Usage location is a field on the user profile specifying the country or region where the user will use the Microsoft 365 services. Microsoft is legally required to ensure certain services are not made available in countries where they are subject to local legal restrictions or regulatory requirements. Before a licence can be assigned, Microsoft validates that all services included in that licence are legally available in the user's country. Without a usage location set, the licence assignment is blocked. The administrator must set the usage location (e.g., "United Kingdom", "Ireland") on the user profile in Entra ID before proceeding with licence assignment.

Q: What is the difference between deleting a user and blocking a user's sign-in in Microsoft Entra ID?
Deleting a user moves the account to the soft-delete recycle bin for 30 days, releases the UPN and licences, and prevents sign-in. After 30 days the account is permanently and irreversibly deleted. Blocking sign-in (AccountEnabled = false) prevents the user from authenticating but leaves the account fully intact in the directory with all its group memberships, licences, profile attributes, and data links preserved. The UPN is not released. Blocking is the right approach during offboarding review periods, employee leave, or security investigations — it keeps the account and its data accessible to admins while preventing the user from accessing services.

Q: A user was accidentally deleted from Entra ID. What can the administrator do, and is there any data loss?
If the deletion occurred within the past 30 days, the administrator can restore the user from the Deleted users view in the Entra admin center (Identity → Users → Deleted users) or via Graph PowerShell using Restore-MgDirectoryDeletedItem. The restored account retains the same object ID, display name, UPN, group memberships, and profile attributes. However, licences are not automatically restored and must be reassigned manually after restoration. If more than 30 days have passed, the account is permanently deleted and cannot be recovered — a new account must be created and data recovered from backups or retention policies.

🎯 SC-300 Mock Test
Module 2 — User Identity Management
5 questions · Scenario-based · Pass mark: 70%

Question 1 of 5

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?

AThe bulk operation failed entirely — partially completed bulk creates are not supported
BCheck the Audit logs under Monitoring & health for individual error messages
CDownload the bulk operation results file from the Bulk operation results page — it shows per-row success/failure with error messages for the 7 failed accounts
DThe 7 failed accounts must have duplicate display names — this is the only cause of partial bulk create failure

Question 2 of 5

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?

ADelete the user account immediately — deleted accounts are retained in the recycle bin for 30 days with all data accessible
BBlock the user's sign-in (AccountEnabled = false) and revoke all active sessions — the account, mailbox, and OneDrive remain accessible to admins for the review period
CRemove the user's licences — this prevents access to all Microsoft 365 services immediately
DChange the user's password and remove MFA methods — this prevents sign-in while keeping the account active

Question 3 of 5

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?

AThe portal has a bug — user attributes cannot be changed in the Entra admin center
BThe user's licence does not allow attribute modification
CThe administrator does not have sufficient permissions to make permanent attribute changes
DThe user is a synced account — their attributes are mastered in on-premises AD and the delta sync cycle (every 30 minutes) overwrites changes made in Entra ID

Question 4 of 5

A user account was permanently deleted from Entra ID 45 days ago. A manager now requests it be restored. What should the administrator communicate?

AThe account cannot be restored — it was permanently deleted after the 30-day retention window. A new account must be created and data recovered from any available backups or retention policies
BMicrosoft Support can restore permanently deleted accounts up to 90 days after deletion
CThe account can be restored from the Deleted users bin — it remains visible there for 90 days
DRaise a P1 support ticket — Microsoft can restore the account from their backup infrastructure

Question 5 of 5

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?

AGuest users appear under External identities → Guest users — they are not shown in the All users list
BGuest users have a yellow icon in the All users list
CIn the All users list, guest users have "Guest" in the User type column. Their UPN also contains the #EXT# suffix (e.g., user_externaldomain.com#EXT#@yourtenant.onmicrosoft.com)
DGuest users cannot be viewed in the Entra admin center — only via Graph PowerShell



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This module is locked — Complete Module 1 and pass its mock test to unlock this module.
Complete the quiz above (70%+) to unlock Module 3: Group Management & Dynamic Membership