Module 2: User Management

📚 M365 Admin Center Course · Module 2 of 9

User Management

MS-102
MS-102 Exam Alignment
MS-102

Manage users and groups (user accounts): create, edit, and delete user accounts; manage sign-in status; perform bulk user operations; understand soft-delete and the 30-day recovery window; revoke active sessions.

  • Create user accounts via the Add a user wizard — know the Usage Location requirement
  • Block user sign-in and understand that existing sessions persist for up to 1 hour
  • Revoke active sessions immediately using Revoke-MgUserSignInSession
  • Know the 30-day soft-delete window and how to restore deleted users
  • Perform bulk user creation using the CSV template
Exam Tip: Two of the most-tested User Management facts on MS-102 are: (1) deleted users remain recoverable for exactly 30 days in the Deleted users bin, and (2) blocking sign-in alone does not immediately terminate active sessions — you must also run Revoke-MgUserSignInSession.
User management is the most frequent daily task for any Microsoft 365 administrator. Whether it's onboarding new starters, resetting passwords, blocking a terminated employee, or running a bulk import for a new department — all of it flows through Users → Active users in the M365 Admin Center. This module covers every user management task you will encounter on the job and in interviews.

👤 Active Users — The User List


M365 Admin Center Users Active users

Microsoft 365 admin center
|
Users › Active users
Users
👤 Active users
🗑 Deleted users
🌐 Guest users

Active users
+ Add a user

🔍Search by name or email address
Display name Username Licenses Status
JDJohn Doe jdoe@contoso.com Microsoft 365 E3 Active
PKPriya Kumar pkumar@contoso.com Microsoft 365 E5 Active
MSMark Stevens mstevens@contoso.com Blocked
Showing 3 of 247 users

Click + Add a user to open the user creation wizard. Select multiple users with checkboxes to perform bulk actions — reset passwords, manage licenses, delete, or block sign-in for multiple accounts simultaneously.

➕ Creating a New User

The Add a user wizard collects all key fields before the account is created, across four steps:

  1. 1
    Basics — First name, last name, display name, username (UPN), and whether to auto-generate or manually set the initial password. Enable "Require this user to change their password when they first sign in" for security.
  2. 2
    Product licenses — Select the usage location (country — required for licensing compliance) and assign one or more available product licenses.
  3. 3
    Optional settings — Set job title, department, office, manager, and phone numbers. Optionally assign an admin role. All fields are editable later.
  4. 4
    Review and finish — Confirm all settings. Option to email the new credentials to a specified address for secure handoff to the user.

⚠️ UPN vs Email Address — Common Interview Topic

The User Principal Name (UPN) is the login username (e.g. jdoe@contoso.com). By default it matches the primary SMTP email address. However, in hybrid environments the UPN might use an on-premises domain (jdoe@contoso.local) while email uses a routable domain (jdoe@contoso.com). This UPN mismatch can cause authentication issues with ADFS or pass-through authentication and is a frequently tested interview topic.

✏️ Editing User Properties

Click any user in the Active users list to open their side panel. Key tabs:

Tab What You Can Edit
Account Username (UPN), display name, sign-in status, email aliases, profile information
Licenses and apps Assign or remove product licenses; toggle individual service plans within a license
Roles Assign or remove admin roles for this user
Mail Email aliases and mail forwarding settings (requires Exchange license)
OneDrive Storage usage and admin access to the user's OneDrive files
Devices Devices registered to this user in Microsoft Intune

🔑 Resetting a Password


M365 Admin Center Users Active users [user] › Reset password
  1. 1
    In Active users, click on the user whose password needs resetting
  2. 2
    In their properties panel, click Reset password
  3. 3
    Choose to auto-generate the password or set a custom one
  4. 4
    Enable "Require this user to change their password when they first sign in" — always recommended
  5. 5
    Optionally email the temporary credentials to yourself for secure handoff

🚫 Blocking a User's Sign-In

Blocking sign-in prevents the user from authenticating to any Microsoft 365 service, without deleting the account. This is the correct first action when an employee is terminated:

  1. 1
    In Active users, click the user and open the Account tab
  2. 2
    Under Sign-in status, click Edit → select Block this user from signing in
  3. 3
    Save the change — the user is blocked from all new authentications immediately

🚨 Critical — Existing Sessions Stay Active for Up to 1 Hour

Blocking sign-in stops new logins but does not immediately terminate existing sessions. Active access tokens remain valid for up to 1 hour. To force immediate logout of all active sessions, also run: Revoke-MgUserSignInSession -UserId [UPN] via PowerShell, or use the Entra ID portal to revoke sessions.

🗑 Deleting and Restoring Users

💡 Soft Delete — 30-Day Recovery Window

When you delete a user in the M365 Admin Center, the account is soft-deleted — moved to Deleted users where it remains for 30 days. During this window it can be fully restored with all properties, licenses, and group memberships intact. After 30 days the account is permanently deleted and cannot be recovered.

To restore: go to Users → Deleted users, select the account, click Restore user. If the original license was released during deletion, you must reassign it after restoration.

📋 Bulk User Operations

Access bulk operations via the ⋯ (more actions) menu in Active users:

  • Add multiple users — Download the CSV template, complete required columns (DisplayName, UserName, Initial Password, etc.), upload the file. M365 validates the CSV before creating any accounts
  • Export users to CSV — Download the full user list with all properties for auditing or reporting purposes
  • Bulk delete — Upload a CSV of UPNs to delete multiple accounts at once

⚡ PowerShell — User Management

PowerShell — Microsoft Graph — User Management

Connect-MgGraph -Scopes "User.ReadWrite.All"

# List all users
Get-MgUser -All | Select DisplayName, UserPrincipalName, AccountEnabled

# Create a new user
$PasswordProfile = @{ Password = "Temp@12345"; ForceChangePasswordNextSignIn = $true }
New-MgUser -DisplayName "Jane Smith" -UserPrincipalName "jsmith@contoso.com" -AccountEnabled $true -PasswordProfile $PasswordProfile -MailNickname "jsmith"

# Block sign-in
Update-MgUser -UserId "jdoe@contoso.com" -AccountEnabled $false

# Revoke all active sessions immediately
Revoke-MgUserSignInSession -UserId "jdoe@contoso.com"

# Soft-delete a user (30-day recovery window)
Remove-MgUser -UserId "jdoe@contoso.com"

# Restore a deleted user
Restore-MgDirectoryDeletedItem -DirectoryObjectId "[object-id]"

🎓 Interview Q&A

Q: What happens to a user's data when you delete their account in Microsoft 365?
The account is soft-deleted — moved to Deleted users for 30 days. The mailbox enters a soft-deleted state, retained for 30 days by default (longer if a litigation hold is applied). OneDrive data is retained for 30 days (configurable up to 180 days). Group memberships and license assignments are released. Within 30 days the account can be fully restored. After 30 days, everything is permanently deleted unless a compliance hold is in place.
Q: How do you immediately block a terminated employee from accessing Microsoft 365?
Two steps are required: First, block sign-in via Active users → Account tab → Block this user from signing in. Second, revoke existing sessions using PowerShell (Revoke-MgUserSignInSession) or the Entra ID portal. Blocking sign-in alone leaves the user's active sessions open for up to 1 hour until tokens expire.
Q: What is the difference between a UPN and a primary email address in Microsoft 365?
The User Principal Name (UPN) is the account's sign-in identifier. The primary SMTP address is the user's email. By default they match, but they can differ — especially in hybrid environments where on-premises AD uses a non-routable domain suffix (contoso.local) as the UPN while Exchange uses a routable domain (contoso.com) for email.
Q: How do you add 500 new users to Microsoft 365 efficiently?
Use bulk user creation. In M365 Admin Center go to Users → Active users → ⋯ → Add multiple users. Download the CSV template, complete the required columns, then upload the file. M365 validates the CSV before creating any accounts and reports any errors.
Q: A user says they can still access Microsoft 365 after you blocked their account. Why?
Blocking sign-in prevents new authentication but does not terminate existing sessions. The user's current access tokens remain valid for up to 1 hour. To force immediate termination of all sessions, run Revoke-MgUserSignInSession -UserId [UPN] via PowerShell. This invalidates all refresh tokens — when any M365 app tries to silently renew its access token, it will fail and force the user out.
🎯 MS-102 Mock Test
Module 2 — User Management
5 questions · Scenario-based · MS-102 exam style · Pass mark: 70%

Question 1 of 5

A user account was deleted 10 days ago. The user's manager now needs the account and all its data restored. What should you do?

AThe account cannot be recovered — it must be recreated from scratch
BGo to Users → Deleted users, select the account, and click Restore user
CContact Microsoft support to recover the deleted mailbox
DCreate a new user with the same email address — the mailbox will reconnect automatically
Correct answer: B. Deleted users are soft-deleted and kept in the Deleted users bin for 30 days. Since the account was deleted only 10 days ago, it is still recoverable.
Question 2 of 5

You have blocked a terminated employee's sign-in. Their manager reports the employee is still accessing Teams on their mobile phone. What is the most likely reason and what should you do?

AThe block has not replicated to mobile devices yet — wait 24 hours
BBlocking sign-in does not terminate existing sessions — also run Revoke-MgUserSignInSession to invalidate all active tokens
CThe user has a backdoor account — check for other accounts in Active users
DDelete the account completely to force immediate logout
Correct answer: B. Blocking sign-in stops new logins but existing access tokens remain valid for up to 1 hour. Run Revoke-MgUserSignInSession -UserId [UPN] in PowerShell to invalidate all refresh tokens immediately.
Question 3 of 5

A new employee needs a Microsoft 365 E3 licence, but when you try to assign it, you receive an error. The licence count shows 50 available E3 seats. What is the most likely cause?

AThe employee's account is still blocked from a previous sign-in attempt
BThe Usage Location has not been set on the user's account
CThe admin account does not have the User Administrator role
DMicrosoft 365 E3 does not include Exchange Online in the user's region
Correct answer: B. Microsoft requires a Usage Location (country) to be set on a user account before a licence can be assigned. Set the Usage Location in the user's Account tab before attempting to assign the licence.
Question 4 of 5

Your organisation is onboarding 300 new employees next week. What is the most efficient method to create all the accounts in Microsoft 365 Admin Center?

ACreate each user manually using the Add a user wizard one by one
BUse the Bulk add option with a completed CSV template file
CUse Microsoft Entra ID Connect to sync accounts from on-premises AD
DAsk each employee to self-register using the Microsoft 365 trial sign-up page
Correct answer: B. For bulk user creation in the M365 Admin Center, go to Users → Active users → ⋯ → Add multiple users. Download the CSV template, complete the required columns, upload the file. M365 validates the CSV before creating accounts.
Question 5 of 5

An employee is going on a 6-month sabbatical. They should not be able to sign in, but their manager needs continued access to their mailbox and OneDrive. Which action is correct?

ADelete the account — the manager can access the mailbox from Deleted users
BRemove the user's licence — they won't be able to sign in without a licence
CBlock the user's sign-in while keeping the licence assigned
DReset the password to something unknown so the user cannot log in
Correct answer: C. Blocking sign-in prevents the user from authenticating while keeping the account and licence intact. The mailbox and OneDrive remain active and accessible to the manager.
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