Normally, When we need to access Dynamics 365 HR/ F&O environment then users should be part of Azure directory. This is created when ordering your license and is used for authentication. This AD is either stand-alone or synced with you OnPrem AD.
There might be situations where you need to add external users to your Dynamics 365 environment.
If the users are not part of Azure AD then the external users does not have Azure AD access.You do not want to add them to your organization since this might add security issues and sometimes licensing costs, and you might not be able to force them to get their own Azure AD tenant.
In this article, We will see how external users can access Dynamics 365 HR and F&O.
Step 1: We have to create a guest user in Azure AD. Normally this can be done by System admin who has all rights in Azure AD.
Login to portal.azure.com with your tenant
Go to Azure Active Directory > All Users > Create New Guest user
Step 2 : Add the users with Microsoft Account(eg * Yahoo.com)
Once the user account added by Admin then you will receive an email.
Once the invitation accepted then your account will be visible in Azure AD.
Step 3 : Add user to Dynamics 365 HR
Login as a Admin
Go to Users form
Click on import users > Select the guest user > Assign employee role
Assign Person Click on Save
Step 4 : Login with guest user in Dynamics 365 HR
I hope you like this article and If you have any questions then please contact me.