Removing users from a group with automatic assignment of licenses

JakobRohde I would add to this, if users currently have direct assigned licenses, you can set up your group assignments and add them to those, but they will then have both direct and inherited licenses for the same thing. So you then need to go and remove the direct assigned licenses, so they just end up with inherited. 

You can do this using powershell to remove the SKU or plan, in which case just the direct license is removed and the inherited license remains (since it cannot be removed). So it can be a little tricky to migrate a lot of users from direct to inherited.