Licenses are assigned on a per-user bases, and are considered as consumed if user is considered active, and has tokens assigned to them.

What qualifies as an active user, and how do you check it ?

To check the status of a user navigate to "Directory | Users", Select the domain of the user then click "SEARCH" and you will be presented with a list of users for the selected domain;

Each user has two status values - one internal and the other external.

The external users status is taken from your external directory (usually AD) and may differ from the internal status.

Licenses are only consumed by a user if they have an internal status set to "Active".

What qualifies as an active token, and how do you check it ?

If a user is active but not currently assigned any tokens then they will not normally be consuming a user license, however users with tokens will still not be consuming a user license if the tokens are not active.

To check the status of tokens that have been assigned to a specific user left click on the context menu of the user and select the option "Tokens";

A list of all tokens assigned to the selected user will then be displayed;

If any of the tokens listed are active, then the users will be consuming a license.

Also In the case of an inactive token being created,...

For example, during the registration of a DeviceID token, this will also count toward license consumption.

What can cause a user to be consuming a license, and how do we check who are consuming licenses ?

In addition to active tokens being assigned to a user, a user may also consume a license if they have any Question and Answer details or certificates stored against the user.  Both can be checked by examining the content of the "Users Use License" report;

If a user has non-zero values in either of the columns "Tokens", "Q&A" or "Certificates", then they will be consuming a license.

If the initial lines of this report contain entries where the First and Last names are blank, then it is probable that this users were deleted in the external directory.  If this is the case and these users are still consuming user licenses, then the licenses may be freed up by running the task "Clear deleted LDAP users".

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