Portals for dynamic Microsoft 365 groups and Entra Suite licensing

SC-300 By islever Editorial Last updated

Short answer

Create Group1 with dynamic user membership in the Microsoft Entra admin center or the Microsoft Intune admin center; the Microsoft 365 admin center cannot set dynamic membership. Assign the Microsoft Entra Suite license to Group1 in the Microsoft Entra admin center or the Microsoft 365 admin center.

Question

HOTSPOT
You have a Microsoft 365 E5 subscription that contains a user named User1.
User1 needs to perform the following tasks:
• Create a Microsoft 365 group named Group1 that has dynamic user membership
• Assign a Microsoft Entra Suite license to Group1.
In which portals can User1 perform each task? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Exhibit: Portals for dynamic Microsoft 365 groups and Entra Suite licensing

Key Takeaways

It tests portal capability boundaries: dynamic membership requires Entra or Intune group tooling, while group-based licensing is handled in the Entra or Microsoft 365 admin center, not Intune.

This SC-300 hotspot asks which admin portals can create a dynamic-membership Microsoft 365 group and assign a Microsoft Entra Suite license to it. The correct split is Entra or Intune for group creation, and Entra or Microsoft 365 admin center for licensing.

Common mistake: Assuming the Microsoft 365 admin center can create a dynamic Microsoft 365 group because it can create the group and assign its license; it lacks the dynamic membership rule option.

Expert Analysis

Why the obvious choice fails It is tempting to answer the Microsoft 365 admin center for both tasks because the object is a Microsoft 365 group and that portal can both create Microsoft 365 groups and assign licenses. That answer satisfies the object type but fails the membership constraint. The Microsoft 365 admin center’s group creation experience does not expose the dynamic user membership rule, so Group1 would be created with assigned membership instead. A lab-tested comment in the thread likewise reports that a dynamic group cannot be created in the Microsoft 365 admin center, and that the creation choice should be Entra plus Intune.

Creation portal To create Group1 as a Microsoft 365 group with dynamic user membership, User1 must use a portal that surfaces the Microsoft Entra group membership type and rule builder: the Microsoft Entra admin center or the Microsoft Intune admin center. Both can create the group with Membership type set to Dynamic User and a membership rule; the Microsoft 365 admin center cannot set that membership type. If only one portal were required, the Entra admin center is the authoritative one.

Licensing portal For assigning the Microsoft Entra Suite license to Group1, the portal requirement changes. Group-based licensing can be performed in the Microsoft Entra admin center, for example in the group’s Licenses area or under Billing > Licenses, and in the Microsoft 365 admin center’s licensing/billing experience. Intune is not a license-assignment portal, even though it can create the group. The comments summarizing the split—Entra and Intune for creation, Entra and Microsoft 365 admin center for licensing—match this capability boundary.

Answer Create Group1 in the Microsoft Entra admin center and the Microsoft Intune admin center. Assign the Microsoft Entra Suite license in the Microsoft Entra admin center and the Microsoft 365 admin center.

Official Reference

Exam Strategy

For portal hotspot questions, separate object creation from property configuration and licensing. Ask whether the portal exposes the specific control, not just the object type: Microsoft 365 admin center can create Microsoft 365 groups but not dynamic membership, and Intune can create groups but is not the license-assignment portal. When unsure, remember dynamic membership is a Microsoft Entra group property.

Frequently Asked Questions

Can the Microsoft 365 admin center create a Microsoft 365 group with dynamic user membership?

No. It can create Microsoft 365 groups, but their membership type is assigned; dynamic user membership requires the Microsoft Entra admin center or the Intune admin center.

Where can an Entra Suite license be assigned to Group1?

Use the Microsoft Entra admin center, such as the group’s Licenses area or Billing > Licenses, or the Microsoft 365 admin center licensing/billing area. Intune does not assign Entra Suite licenses.

Does dynamic group membership require an Entra ID license?

Yes. Dynamic user membership requires Microsoft Entra ID P1 or P2; Microsoft 365 E5 includes Entra ID P2, and the Entra Suite also provides advanced Entra capabilities.

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Discussion 5 contributions

Compiled from public community threads and reader submissions, lightly edited for clarity. Handles and vote tallies are shown as recorded, and comments reflect the views of individual contributors.

From public community threads 5

  1. captainspork 👍 3
    I think both given answers are wrong: Dynamic groups can be made in: - Entra & Intune Licenses can be assigned: - Directly in admin center under licenses - In Entra through Identity > Billing > Licenses or directly on the group under Licenses So 1: Entra & Intune 2: Entra & 365 Admin Center
  2. raduM 👍 3
    cannot create dynamic group in microsoft365 admin center. tested in lab. 1st box is Entra and intune. 2nd bos Microsoft 365 admin center
  3. narak7861008 👍 1
    So it looks like you can only create a dynami user membership group in Microsoft Entra Admin Center and Microsoft Intunre Admin Center per Google. You can't do it in Microsoft 365 Admin Center. So the box 1 given answer is incorrect.
  4. Tuyi 👍 1
    Create Group1: Entra admin center and Intune admin center only Assign license: Entra admin center and Microsoft 365 admin center only
  5. raduM 👍 1
    eventhough there is no option to create m365 dynamic user groups. dynamic groups are security group not m365

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