I am trying to disable several of the service plans in Office 365 for all licensed users.   I am able to create the object reference to hold the services that I are going to disable using:

$O365Licences = New-MsolLicenseOptions AccountSkuId contoso:ENTERPRISEPACK_faculty -DisabledPlans MSCOSTNADARD, SHAREPOINTWAC_EDU, SHAREPOINTENTERPRISE_EDU

When  I run

Get-MsolUser -All | Set-MsolUserLicense -LicenseOptions $O365Licences

I get the following error messages.

Set-MsolUserLicense : Unable to assign this license because the license options
 are invalid.
At line:1 char:40
+ Get-MsolUser -All | Set-MsolUserLicense <<<<  -LicenseOptions $O365Licences
    + CategoryInfo          : OperationStopped: (:) [Set-MsolUserLicense], Mic
   rosoftOnlineException
    + FullyQualifiedErrorId : Microsoft.Online.Administration.Automation.Inval
   idUserLicenseOptionException,Microsoft.Online.Administration.Automation.Se
  tUserLicense

Set-MsolUserLicense : Unable to assign this license because the license options
 are invalid.
At line:1 char:40
+ Get-MsolUser -All | Set-MsolUserLicense <<<<  -LicenseOptions $O365Licences
    + CategoryInfo          : OperationStopped: (:) [Set-MsolUserLicense], Mic
   rosoftOnlineException
    + FullyQualifiedErrorId : Microsoft.Online.Administration.Automation.Inval
   idUserLicenseOptionException,Microsoft.Online.Administration.Automation.Se
  tUserLicense

Set-MsolUserLicense : Unable to assign this license because the license options
 are invalid.
At line:1 char:40
+ Get-MsolUser -All | Set-MsolUserLicense <<<<  -LicenseOptions $O365Licences
    + CategoryInfo          : OperationStopped: (:) [Set-MsolUserLicense], Mic
   rosoftOnlineException
    + FullyQualifiedErrorId : Microsoft.Online.Administration.Automation.Inval
   idUserLicenseOptionException,Microsoft.Online.Administration.Automation.Se
  tUserLicense

Set-MsolUserLicense : Unable to assign this license because the license options
 are invalid.
At line:1 char:40
+ Get-MsolUser -All | Set-MsolUserLicense <<<<  -LicenseOptions $O365Licences
    + CategoryInfo          : OperationStopped: (:) [Set-MsolUserLicense], Mic
   rosoftOnlineException
    + FullyQualifiedErrorId : Microsoft.Online.Administration.Automation.Inval
   idUserLicenseOptionException,Microsoft.Online.Administration.Automation.Se
  tUserLicense

Set-MsolUserLicense : Unable to assign this license because the license options
 are invalid.
At line:1 char:40
+ Get-MsolUser -All | Set-MsolUserLicense <<<<  -LicenseOptions $O365Licences
    + CategoryInfo          : OperationStopped: (:) [Set-MsolUserLicense], Mic
   rosoftOnlineException
    + FullyQualifiedErrorId : Microsoft.Online.Administration.Automation.Inval
   idUserLicenseOptionException,Microsoft.Online.Administration.Automation.Se
  tUserLicense

Set-MsolUserLicense : Unable to assign this license because the license options
 are invalid.
At line:1 char:40
+ Get-MsolUser -All | Set-MsolUserLicense <<<<  -LicenseOptions $O365Licences
    + CategoryInfo          : OperationStopped: (:) [Set-MsolUserLicense], Mic
   rosoftOnlineException
    + FullyQualifiedErrorId : Microsoft.Online.Administration.Automation.Inval
   idUserLicenseOptionException,Microsoft.Online.Administration.Automation.Se
  tUserLicense

Set-MsolUserLicense -UserPrincipalName testUser -RemoveLicenses "contoso:ENTERPRISEPACK" 

Get-MsolUser -All | Set-MsolUserLicense -RemoveLicenses contoso:ENTERPRISEPACK_faculty

If you want to remove all licenses from the user, '-RemoveLicenses'

• Edited by vaadadmin2010 18 hours 28 minutes ago

I want to disable several of the service plans\licenses.  As long as the users have a valid e-mail account they are able to create an Office 365 account.

We do not want users to access to Office Online and SharePoint.  We would prefer not to have to run a PS script on all the user accounts several times a day.

To change certain users and specific licenses.  Try this to disable specific items.  This reads the username and the applications from a sql database, but should give you the general idea.

if ($reader["RMS_S_ENTERPRISE"] -notlike "ENABLED") { $DisabledOptions += "RMS_S_ENTERPRISE" }
            if ($reader["OFFICESUBSCRIPTION"] -notlike "ENABLED") { $DisabledOptions += "OFFICESUBSCRIPTION" }
            if ($reader["MCOSTANDARD"] -notlike "ENABLED") { $DisabledOptions += "MCOSTANDARD" }
            if ($reader["SHAREPOINTWAC"] -notlike "ENABLED") { $DisabledOptions += "SHAREPOINTWAC" }
            if ($reader["SHAREPOINTENTERPRISE"] -notlike "ENABLED") { $DisabledOptions += "SHAREPOINTENTERPRISE" }
            if ($reader["EXCHANGE_S_ENTERPRISE"] -notlike "ENABLED") { $DisabledOptions += "EXCHANGE_S_ENTERPRISE" }
            Try
            {
                Set-MsolUser -UserPrincipalName $reader["UserName"] -UsageLocation "US"
            
                $applyNewLicense = New-MsolLicenseOptions -AccountSkuId "contoso:ENTERPRISEPACK" -DisabledPlans $DisabledOptions
                Set-MsolUserLicense -UserPrincipalName $reader["UserName"] -AddLicenses contoso:ENTERPRISEPACK -LicenseOptions $applyNewLicense -ErrorAction Stop

I want to disable several of the service plans\licenses.  As long as the users have a valid e-mail account they are able to create an Office 365 account.

We do not want users to access to Office Online and SharePoint.  We would prefer not to have to run a PS script on all the user accounts several times a day.

Create an array of disabled products.

$disabledplans = "SHAREPOINTWAC_EDU","SHAREPOINTENTERPRISE_EDU"

$options = New-MsolLicenseOptions -AccountSkuId ... -DisabledPlans $disabledplans

Set-MsolUserLicense -UserPrincipalName $upn -LicenseOptions $options

When I try to run Set-MsolUserLicense -UserPrincipalName $upn -LicenseOptions $options I get

Set-MsolUserLicense : Cannot bind argument to parameter 'UserPrincipalName' bec
ause it is null.
At line:1 char:39
+ Set-MsolUserLicense -UserPrincipalName <<<<  $upn -LicenseOptions $options
    + CategoryInfo          : InvalidData: (:) [Set-MsolUserLicense], Paramete
   rBindingValidationException
    + FullyQualifiedErrorId : ParameterArgumentValidationErrorNullNotAllowed,M
   icrosoft.Online.Administration.Automation.SetUserLicense

Get-MsolUser -All | Set-MsolUserLicense -LicenseOptions $O365Licences

Off Topic, Code is little scary :) may be you are not in hybrid - if yes then your FIM Dir Sync should be well customized for removing service account etc.

Dan - Suggestion will do

The below has good tips for you

https://support.office.com/en-us/article/Disable-Office-365-Service-Plans-with-Windows-PowerShell-a1754aa5-5055-47a4-82e1-2291849cb476

When I try to run Set-MsolUserLicense -UserPrincipalName $upn -LicenseOptions $options I get

Set-MsolUserLicense : Cannot bind argument to parameter 'UserPrincipalName' bec
ause it is null.
At line:1 char:39
+ Set-MsolUserLicense -UserPrincipalName <<<<  $upn -LicenseOptions $options
    + CategoryInfo          : InvalidData: (:) [Set-MsolUserLicense], Paramete
   rBindingValidationException
    + FullyQualifiedErrorId : ParameterArgumentValidationErrorNullNotAllowed,M
   icrosoft.Online.Administration.Automation.SetUserLicense

Isn't there any way to disable a service for all users?

According to TID - https://support.office.com/en-us/article/Disable-Office-365-Service-Plans-with-Windows-PowerShell-a1754aa5-5055-47a4-82e1-2291849cb476

You just need to run the following commands.

$O365Licences = New-MsolLicenseOptions AccountSkuId contoso:ENTERPRISEPACK  -DisabledPlans MSCOSTNADARD, SHAREPOINTWAC

Get-MsolUser -All | Set-MsolUserLicense -LicenseOptions $O365Licences

Isn't there any way to disable a service for all users?

According to TID - https://support.office.com/en-us/article/Disable-Office-365-Service-Plans-with-Windows-PowerShell-a1754aa5-5055-47a4-82e1-2291849cb476

You just need to run the following commands.

$O365Licences = New-MsolLicenseOptions AccountSkuId contoso:ENTERPRISEPACK  -DisabledPlans MSCOSTNADARD, SHAREPOINTWAC

Get-MsolUser -All | Set-MsolUserLicense -LicenseOptions $O365Licences

When I run the command Get-MsolUser -All | Set-MsolUserLicense -LicenseOptions $O365Licences in our test tenant, I get the following error messages:

Set-MsolUserLicense : Unable to assign this license because the license options
 are invalid.
At line:1 char:40
+ Get-MsolUser -All | Set-MsolUserLicense <<<<  -LicenseOptions $O365Licences
    + CategoryInfo          : OperationStopped: (:) [Set-MsolUserLicense], Mic
   rosoftOnlineException
    + FullyQualifiedErrorId : Microsoft.Online.Administration.Automation.Inval
   idUserLicenseOptionException,Microsoft.Online.Administration.Automation.Se
  tUserLicense

Hope the account SKU ID you used is correct!

and what happens if you change the -DisabledPlans as array objects for example

$O365Licences = New-MsolLicenseOptions AccountSkuId contoso:ENTERPRISEPACK  -DisabledPlans @("MSCOSTNADARD", "SHAREPOINTWAC")

Get-MsolUser -All | Set-MsolUserLicense -LicenseOptions $O365Licences

Hope the account SKU ID you used is correct!

and what happens if you change the -DisabledPlans as array objects for example

$O365Licences = New-MsolLicenseOptions AccountSkuId contoso:ENTERPRISEPACK  -DisabledPlans @("MSCOSTNADARD", "SHAREPOINTWAC")

Get-MsolUser -All | Set-MsolUserLicense -LicenseOptions $O365Licences

If the above fails then the issur may be due to two different subscription - Which results in two Sku ID

I get the same error message.  The account SKU ID that I using is correct. 

I am able to disable the service plan\license for an individual user.  When I try to disable a service plan for all users, I get the error messages however the service plans\licenses are disabled when I check individual user accounts.

Set-MsolUserLicense -UserPrincipalName testUser -RemoveLicenses "contoso:ENTERPRISEPACK" 

Get-MsolUser -All | Set-MsolUserLicense -RemoveLicenses contoso:ENTERPRISEPACK_faculty

If you want to remove all licenses from the user, '-RemoveLicenses'

• Edited by vaadadmin2010 Tuesday, September 08, 2015 12:40 PM

I am able to disable the service plan\license for an individual user.  When I try to disable a service plan for all users, I get the error messages however the service plans\licenses are disabled when I check individual user accounts.

This would suggest the command is working against licensed users and you may be seeing the error on the unlicensed. Have you verified all users are licensed?

Get-MsolUser -all |select -first 50

Of the six accounts in test tenant, I can see that half them are licensed.  The other half are showing up as false under the isLicensed column.

OK that's probably why you're seeing the error then. 

I tried running the following commands again.

$O365Licences = New-MsolLicenseOptions AccountSkuId xxxx:ENTERPRISEPACK  -DisabledPlans MSCOSTNADARD, SHAREPOINTWAC

Get-MsolUser -All | Set-MsolUserLicense -LicenseOptions $O365Licences

I get the following error messages:

Set-MsolUserLicense : Unable to assign this license because the license options
 are invalid.
At line:1 char:40
+ Get-MsolUser -All | Set-MsolUserLicense <<<<  -LicenseOptions $O365Licences
    + CategoryInfo          : OperationStopped: (:) [Set-MsolUserLicense], Mic
   rosoftOnlineException
    + FullyQualifiedErrorId : Microsoft.Online.Administration.Automation.Inval
   idUserLicenseOptionException,Microsoft.Online.Administration.Automation.Se
  tUserLicense