When a new Microsoft 365 tenant is created, Microsoft automatically assigns a default domain in the format tenantname.onmicrosoft.com.
For example:
Although this default domain can be used for accessing Microsoft 365 services, most organizations prefer to use their own business domain for professional communication.
A custom domain allows users to have professional email addresses such as john@company.com.
instead of: john@company.onmicrosoft.com
By adding a custom domain to Microsoft 365, organizations can improve branding, enhance credibility, and provide a better user experience.
A custom domain helps organizations establish a professional identity while using Microsoft 365 services.
Before adding a custom domain, the following requirements should be fulfilled:
Microsoft 365 Tenant—An active Microsoft 365 tenant must already exist.
The organization should own a domain purchased from a domain registrar, such as:
The user performing the task should have:
or
Adding a custom domain to Microsoft 365 involves verification and DNS configuration. The process can be divided into several stages.
Sign in to the Microsoft 365 Admin Center using an administrator account.
Admin Portal: admin.microsoft.com
After a successful sign-in, the Microsoft 365 Admin Center dashboard appears.
From the left navigation pane: Settings → Domains
The Domains page displays:
This section is used to add and manage domains within the tenant.
Select: Add Domain
A wizard will start asking for the domain name.
Example: company.com
After entering the domain name, select Use This Domain.
Microsoft then begins the verification process.
Before Microsoft allows the domain to be used, ownership must be verified.
The most common verification method uses a TXT record.
Microsoft generates a unique TXT record similar to:
Type: TXT
Value: MS=ms12345678
The administrator must add this TXT record in the DNS management portal of the domain provider.
Log in to the domain registrar's portal.
Examples:
Open DNS Management and create the TXT record provided by Microsoft.
After saving the record, Microsoft checks public DNS and verifies ownership.
This process may take several minutes, depending on DNS propagation.
After successful verification, Microsoft provides additional DNS records required for services such as:
Common records include:
MX Record—Used for email delivery.
CNAME Record—Used for service discovery and Outlook configuration.
TXT Record—Used for verification and security purposes.
SRV Record—Used by communication services such as Teams.
These records must be added to the DNS zone of the domain.
After all required DNS records have been configured, Microsoft validates the configuration.
Once validation is successful:
The custom domain is now fully integrated with the Microsoft 365 tenant.
After the domain has been added successfully, administrators can assign it to users.
Example:
Before: john@company.onmicrosoft.com
After: john@company.com
The custom domain can also be assigned to:
| Record Type | Purpose |
| TXT Record | Domain Verification |
| MX Record | Email Routing |
| CNAME Record | Service Discovery |
| SRV Record | Teams and Communication Services |
Administrators may encounter some common problems while adding a custom domain.
1. Domain Verification Failure
Cause: TXT record not added correctly.
Solution: Verify DNS configuration and wait for DNS propagation.
2. Email Not Working
Cause: MX record missing or incorrect.
Solution: Verify Exchange Online MX record configuration.
3. Outlook AutoDiscover Issues
Cause: Missing CNAME record.
Solution: Configure the AutoDiscover CNAME record correctly.
4. DNS Propagation Delay
Cause: DNS changes require time to replicate globally.
Solution: Wait for propagation and retry verification.
ABC Technologies purchases the domain: abctech.com
The company creates a Microsoft 365 tenant and initially receives admin@abctech.onmicrosoft.com.
The administrator adds the custom domain abctech.com through the Microsoft 365 Admin Center and verifies ownership using a TXT record.
After configuring MX and CNAME records, employees receive professional email addresses such as:
The organization can now use the custom domain across Microsoft 365 services, including Exchange Online, Teams, SharePoint, and OneDrive.
User accounts are required for employees to access Microsoft 365 services such as Outlook, Teams, OneDrive, SharePoint, and other cloud applications. Every employee who needs access to Microsoft 365 resources must have a user account and an appropriate license assigned to them.
In small organizations, administrators can manually create user accounts one at a time. However, in medium and large organizations where hundreds of employees need accounts, manually creating each user becomes time-consuming. To simplify this process, Microsoft 365 provides a bulk user creation feature using CSV files.
Microsoft 365, therefore, supports two methods for creating users:
Manual user creation is the process of creating individual user accounts directly from the Microsoft 365 Admin Center.
This method is suitable when:
Sign in using an administrator account.
Portal: admin.microsoft.com
From the left navigation pane: Users → Active Users
This section displays all existing users within the tenant.
Select: Add a User
A user creation wizard appears.
Provide the required details such as:
First Name: John
Last Name: Smith
Username: john.smith@company.com
Select an appropriate license, such as:
The assigned license determines which Microsoft 365 services the user can access.
If the user requires administrative permissions, an administrator role can be assigned.
Examples:
For regular employees, no administrative role is usually assigned.
Review the information and select: Finish Adding
Microsoft 365 creates the account and generates login credentials.
The user can now access Microsoft 365 services.
Bulk user creation allows administrators to create multiple users simultaneously by importing a CSV (Comma-Separated Values) file.
Instead of creating users individually, administrators prepare user information in a spreadsheet and upload it to Microsoft 365.
This method significantly reduces administrative effort and improves efficiency.
CSV import is commonly used when:
A CSV file is a spreadsheet file that stores information in rows and columns.
Each row represents a user account.
Example:
| Display Name | Username | First Name | Last Name |
| Raj Sharma | raj.sharma@company.com | Raj | Sharma |
| Priya Singh | priya.singh@company.com | Priya | Singh |
| Amit Kumar | amit.kumar@company.com | Amit | Kumar |
Sign in using a global administrator account.
Go to: Users → Active Users
Choose: Add Multiple Users
Microsoft provides a CSV template that contains the required columns.
Download Microsoft's sample CSV file.
The template includes fields such as:
Open the CSV file and enter user details.
Example:
| Username | First Name | Last Name |
| raj@company.com | Raj | Sharma |
| priya@company.com | Priya | Singh |
| amit@company.com | Amit | Kumar |
Save the file after entering all user information.
Return to the Microsoft 365 Admin Center and upload the completed CSV file.
Microsoft validates the data before creating accounts.
After successful validation, assign licenses to the imported users.
Examples:
Microsoft creates all user accounts simultaneously.
A report is generated showing:
1. Invalid Usernames
Cause: Incorrect username format.
Solution: Verify usernames follow the correct email format.
2. Duplicate Accounts
Cause: User already exists.
Solution: Check existing user accounts before importing.
3. Missing Required Fields
Cause: Mandatory fields are left blank.
Solution: Complete all required columns in the CSV file.
4. License Assignment Errors
Cause: Insufficient available licenses.
Solution: Purchase or assign additional licenses.
| Feature | Manual Creation | CSV Import |
| Number of Users | Single User | Multiple Users |
| Speed | Slow | Fast |
| Administrative Effort | High | Low |
| Suitable For | Small Organizations | Medium and Large Organizations |
| User Customization | High | Moderate |
| Bulk Onboarding | No | Yes |
In every organization, users often need access to the same resources, applications, files, or communication channels. Instead of assigning permissions individually to each user, administrators can create groups and manage users collectively.
A group is a collection of users that can be managed as a single unit. Groups simplify administration, improve collaboration, and make permission management more efficient.
For example, instead of assigning access to 50 employees individually, an administrator can create a group called HR Department and grant permissions to the group. All users who are members of that group automatically receive the required access.
Microsoft 365 provides different types of groups that serve different business purposes.
A group is an object that contains multiple users and allows administrators to manage permissions, communication, and collaboration more efficiently.
Groups help organizations:
Managing permissions user by user becomes difficult as the organization grows.
Instead of assigning permissions individually, administrators can:
All members automatically receive the assigned permissions.
This approach saves time and reduces configuration errors.
Microsoft 365 supports several types of groups.
Microsoft 365 Group
A Microsoft 365 Group is designed for collaboration and provides shared resources such as:
This is the most commonly used group type in Microsoft 365.
A security group is primarily used to assign permissions to users.
Administrators use Security Groups to:
Security Groups do not provide collaboration features such as shared mailboxes or Teams.
A distribution group is used for email communication.
When an email is sent to the group, all members receive the message.
Example: hr@company.com
Instead of sending emails to each HR employee individually, users can send an email to the distribution group.
A mail-enabled security group combines the features of
It can be used for:
Organizations use groups because they provide several advantages.
Administrators create groups through the Microsoft 365 Admin Center.
Sign in using an administrator account.
Portal: admin.microsoft.com
From the left navigation menu:
Teams & Groups → Active Teams & Groups
or
Groups → Active Groups
This section displays all existing groups in the organization.
Choose: Add a Group
Microsoft displays available group types.
Examples:
Select the appropriate group based on business requirements.
Example: Microsoft 365 Group
Provide details such as:
Depending on the group type, administrators can configure:
Users can be added during group creation or later.
Example Members:
Review the settings and select: Create Group
Microsoft creates the group and makes it available for use.
A company has 30 employees in the Human Resources department.
Instead of assigning SharePoint permissions individually to each employee, the administrator creates an HR Department Microsoft 365 Group.
The administrator then grants access to the SharePoint site to the group.
Whenever a new HR employee joins the company, the administrator simply adds the employee to the HR group, and the required permissions are automatically applied.
This approach simplifies administration and ensures consistent access management.
Examples:
Creating a group is only the first step in managing users and resources within Microsoft 365. To make a group useful, administrators must add users as members of the group.
When users are added to a group, they automatically receive the permissions, access rights, and collaboration benefits associated with that group. This approach eliminates the need to configure permissions for each user individually.
For example, if an organization has an HR Department group, adding an employee to that group immediately grants access to HR-related resources, documents, and communication channels.
Groups simplify administration and improve resource management.
Instead of assigning permissions directly to individual users, administrators can:
All group members automatically inherit the assigned permissions.
This makes user management more efficient and scalable.
Users can be added to groups:
During Group Creation - Members can be selected while creating the group.
After Group Creation - Users can be added or removed at any time through the Microsoft 365 Admin Center.
Sign in using an administrator account.
Portal: admin.microsoft.com
From the left navigation menu:
Teams & Groups → Active Teams & Groups
or
Groups → Active Groups
This section displays all groups available in the organization.
Choose the group to which users will be added.
Example:
HR Department
Sales Team
IT Support
Finance Team
Within the group settings, locate the ‘Members’ section
This section displays all current members of the group.
Select: Add Members
A list of available users appears.
Search for and select the required users.
Example:
Multiple users can be selected simultaneously.
After selecting users, click “Save.”
The selected users become members of the group.
Return to the Members section and confirm that the users have been added successfully.
The group membership list should now display the newly added users.
Microsoft 365 allows administrators to add multiple users to a group at the same time.
This is useful when:
Adding multiple users simultaneously reduces administrative effort and saves time.
Once a user becomes a member of a group, they automatically receive access based on the group type.
The user receives access to:
The user receives:
The user receives group email communications.
The user receives:
Administrators can remove users when access is no longer required.
Common reasons include:
Removing a user from a group automatically removes access associated with that group.
A new HR employee joins the company.
The administrator adds the employee to the HR Department group, automatically providing access to HR resources.
A salesperson joins the sales team.
The administrator adds the user to the Sales Team Microsoft 365 Group, granting access to team documents, calendars, and communication tools.
An organization uses a security group to control access to a business application.
When a user is added to the Security Group, application access is automatically granted.
Examples:
ABC Technologies has an HR department consisting of 25 employees.
The administrator creates a Microsoft 365 group called HR Department
This group has access to:
When a new employee named Raj joins the HR department, the administrator simply adds Raj to the HR department group.
Immediately, Raj gains access to all HR resources without requiring individual permission assignments.
This saves administrative time and ensures consistent access management.
