I came across the situation where I have to delete a user from Microsoft Dynamics 365 and found that we cannot disable or delete user directly from Mircosoft Dynamics 365 but we are able to disable/delete user from admin center of Office 365 for Microsoft Dynamics 365 account.
See the below screenshot where we don’t have any option in Dynamics 365 instance to disable/delete user :
But we are able to disable/delete user from Office 365’s Admin center, select user from the list of active users and click on “Delete User” option from the right window or click on “More” button to select “delete a user” option.
When we click on “Delete user” option, we get other options for preventing access for a user – Block the user, Reset the user’s password and Remove product licences:
When we delete any user, their data is deleted and their licences can be assigned to other users if we want. We can also restore deleted user and their data for up to 30 days after you delete them.
Finally, click on “Delete” button to delete the user from the system.