---
title: Create a reserve entitlement for Microsoft online services in Software Asset Management classic
description: Create a reserve entitlement for all Microsoft online services in the Software Asset Management classic application so that you can add licenses to an existing Microsoft 365 subscription.
locale: en-US
canonical_url: https://www.servicenow.com/docs/r/australia/it-asset-management/software-asset-management/create-o365-reserve.html
release: australia
product: Software Asset Management
classification: software-asset-management
topic_type: task
last_updated: "2026-03-12"
reading_time_minutes: 2
breadcrumb: [Creating reserve entitlements for Microsoft online services, Microsoft 365 integration, Software Asset Management publisher pack for Microsoft, Supported software publisher licenses, Software Asset Management, IT Asset Management, Asset Management]
---

# Create a reserve entitlement for Microsoft online services in Software Asset Management classic

Create a reserve entitlement for all Microsoft online services in the Software Asset Management classic application so that you can add licenses to an existing Microsoft 365 subscription.

## Before you begin

Role required: sam\_user or sam\_admin

## Procedure

1.  Navigate to **All** > **Asset** > **Portfolios** > **Software Entitlement** and then select a Microsoft Office 365 entitlement.

2.  Select the **Create Reserve Entitlement** related link.

3.  On the form, fill in the fields.

    |Field|Description|
    |-----|-----------|
    |Start date|Start date for the new licenses.|
    |End date|The earliest anniversary of the source entitlement end date. This field is calculated automatically.|
    |Purchased rights|Number of new licenses.|
    |Monthly unit cost|The per-license monthly cost of your Microsoft 365 subscription, calculated by dividing the unit cost of the source entitlement by its duration in months. This value reflects your actual Microsoft 365 agreement pricing and is used to calculate true-up costs and optimization savings such as license reclamation.|
    |Software model|Software model for the existing entitlement. This field populates automatically.|
    |Source entitlement|Existing entitlement used to create the reserve entitlement. This field populates automatically.|

4.  Select **Submit**.

    The new reserve entitlement is added to the **Reserve Entitlements** related list in the source entitlement. The state of the reserve entitlement is In use and the **Reserve entitlement** check box is selected.


## What to do next

Run a reconciliation to include the new reserve entitlement in the true-up cost calculation. Navigate to **Software Asset** > **Office 365 & Adobe Cloud** to view the [Office 365 & Adobe Cloud dashboard](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/it-asset-management/software-asset-management/dashboard-microsoft.md). The cost of the reserve entitlement is included in True-up Cost and is not included in Current Subscription Spend.

When you pass the end date of the reserve entitlement, the SAM - Subscription Maintenance scheduled job creates a new entitlement to replace it.

**Note:** The new entitlement is not added to the Reserve Entitlements related list in the original source entitlement.

|Field|Value|
|-----|-----|
|Reserve entitlement|Option that indicates whether the new entitlement is a reserve entitlement. This option is not selected.|
|Start date|Date that the new entitlement is created.|
|End date|End date of the original source entitlement.|
|Source entitlement|Original source entitlement.|
|Purchased rights|Same number of purchased rights as the reserve entitlement.|
|Active rights|Same number of active rights as the reserve entitlement.|
|Allocations available|Same number of allocations available as the reserve entitlement.|
|State|State of the entitlement. This field is set to **In use**.|

The state of the reserve entitlement updates to **Retired**. On the Office 365 & Adobe Cloud dashboard, the cost of the retired reserve entitlement is removed from the True-up Cost. The cost of the new entitlement is included in Current Subscription Spend.