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Configure Microsoft 365 Multi-Tenant Organization Access Reviews

Tauseeq MagsiTauseeq Magsi Sep 30, 2026 868 views

Question details

The organization needs to configure cross-tenant application access for users in Tenant A to access Tenant B, and understand how guest access reviews and licensing work in a multi-tenant environment.

Configure Microsoft 365 Multi-Tenant Organization Access Reviews
Product
Microsoft 365
Device & OS
not provided
Scenario
Setting up cross-tenant application access and managing governance through guest access reviews.
Observed behavior
Administrators need clarity on whether user licenses transfer between tenants and what specific licensing is required in the host tenant to perform access reviews.
Before you start

Ensure you have Global Administrator or Privileged Role Administrator access in both Tenant A and Tenant B to configure Microsoft Entra multi-tenant settings and verify licenses.

Solution 1Recommended

Configure Multi-Tenant Access and Verify Host Licensing

Set up Microsoft Entra multi-tenant organization capabilities and ensure the host tenant has the correct licenses for guest access reviews.

When setting up cross-tenant access, licenses assigned to users in their home tenant (Tenant A) do not transfer to the resource tenant (Tenant B). To perform automated guest access reviews in Tenant B, Tenant B must independently hold the required governance licenses.

1
Verify Tenant B Licensing

Log in to the Microsoft Entra admin center for Tenant B and navigate to Billing > Licenses. Verify that Tenant B has active Microsoft Entra ID P2 or Microsoft Entra ID Governance licenses.

2
Enable Multi-Tenant Organization

In the Microsoft Entra admin center, navigate to Identity > External Identities > Cross-tenant access settings, and configure the multi-tenant organization settings to allow inbound access from Tenant A.

3
Configure Application Access

Ensure the target application in Tenant B is configured to accept guest users, and provision the users from Tenant A as B2B collaboration guests in Tenant B.

4
Create Guest Access Reviews

Navigate to Identity Governance > Access Reviews in Tenant B. Create a new access review targeting the guest users invited from Tenant A to regularly audit their application access.

Configure Multi-Tenant Access and Verify Host Licensing
Licensing Requirement: If Tenant B lacks Entra ID P2 or Governance licensing, you will not be able to automate guest access reviews for users originating from Tenant A.
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Frequently Asked Questions

Do Microsoft 365 licenses transfer between tenants for guest users?

No, licenses assigned to a user in their home tenant (Tenant A) do not transfer to the resource tenant (Tenant B). Tenant B must be licensed separately for advanced features like guest access reviews.

What licenses are required to run guest access reviews in Microsoft Entra?

The resource tenant hosting the application (Tenant B) must have Microsoft Entra ID P2 or Microsoft Entra ID Governance licenses to utilize automated access review capabilities for guest users.

How do users from one tenant access applications in another?

They can securely access the applications through Microsoft Entra's multi-tenant organization capabilities and B2B collaboration, which provisions them as guest users in the host tenant.