I recently had to update our license file (FIN.FLF) on our Navision server. For some reason the Navision clients wasn't updated with the new granules.
In the "Microsoft Business Solutions-Navision\Client" folder on the clients I could see that the old FIN.FLF file was located. So I deleted that file and the clients afterwards retrieved the new FIN.FLF from the server.
That leads me to some questions.

1. What's the use of the FIN.FLF file being copied to the client computer?
2. Shouldn't the server's FIN.FLF file take precedence?
3. Is the FIN.FLF file only checked when starting the Navision client?
Comments
2. yes the server license has the precedence
3. yes, when you will connect to the database or to the server then the license will be checked.
EDIT:
4. if you change the fin.flf in the Server Folder, you must restart the server service. After restarting the server takes the new license file
5. if you use sql, u must upload the new license 8over the license window in NAV)
Regards
A client can use any licence file that they want.
2. Shouldn't the server's FIN.FLF file take precedence?
I stand corrected - the server licence takes precedence, but I can change it later on.
3. Is the FIN.FLF file only checked when starting the Navision client?
I can change the licence even after starting the Nav client.
So yes, the server license does take precedence. You don't even need to have a copy of the license in the client installation folder
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