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Users with the People license on SSO-enabled sites are receiving a “Forbid Login with Password must be enabled” error when creating or editing users, preventing access changes or new user creation

Date: 19/05/2026

Status: Under investigation

Reference: CE00065979

 

Issue

Users with the People license on SSO-enabled sites are receiving a “Forbid Login with Password must be enabled” error when creating or editing users, preventing access changes or new user creation

The issue occurs because ForbidLoginWithPassword has been enforced 

 

Workaround

There are 3 different scenarios to this issue

If the issue with a Partner user, workaround options are: 

- Partners get added to customer Entra ID 

- Partners can get written approval from the customer for MYOB to remove the People Payroll User role from affected Partner users 

 If the issue is with creating or edit existing ESS users in 25.1.300, workaround is to: 

 - Add users to Entra ID and manage them via Entra ID

 - Upgrade to 25.1.401/25.2.100 to get our of the mandatory enforcement for  ForbidLoginWithPassword.

If the issue the site has newly switching to SSO where no one can now log in because native users are forbidden to login and SSO users are not yet fully configured, workaround is to:

- If no one can access site, contact MYOB to have MYOB add MYOB ID button alongside SSO button