I have ten user licenses in the OnDemand version. The system is erroneously counting disabled users in the license count and thereby is not allowing me to add new active users by disabling others to keep the active count under 10. Everything i read says that this license count included only active (not disabled) users.
I have also looked on line for solutions and found that there is a way to disable license count via Application Access page. Because we are using the on-demand version i do not have access to this page. so that is a dead end.