# Licensing for Active Directory

Active Directory is licensed based on your customer type and transaction model. Review the following table to understand the licensing basis, usage reporting, and overage enforcement for your scenario:

Customer Type | Licensing Model | Basis | Usage Reporting | Overage Enforcement
--- | --- | --- | --- | ---
Direct, Channel, and Marketplace Private Offer | Heartbeat | Total number of employees in your organization (full-time, part-time, contractors). | Not reported | Does not apply
MSP and Marketplace Utility | Per-enabled-user-account | Enabled user accounts in Active Directory and Entra ID. | Metered and reported | Applies

Review the section below that applies to your transaction type.

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