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License limit error upon creating new user

Knowledge Article Number 000182185
Description When attempting to create a New User a LICENSE LIMIT EXCEEDED error message presents even though User licenses are available.

This is expected as when ANY license is at a negative count - including Feature Licenses- this error will present on User Creation.

This occurs when a Company reduces its license count without disassociating the license from Users.
Resolution Either adjust licenses so that they are no longer in a negative count or purchase additional licenses.

Please see these articles for purchasing additional user licenses:
What is Checkout & how can I access it?

Increase the number of licenses in your Organization

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