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I am trying to share a Site Collection to external user outside of the organisation.

The feature is enabled at tenant level as well as site level:

Tenant Level Config:

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Site Level Config:

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However I still can't add the users in "People and Groups" and or Invite users to the Document Library.

Anything I've missed?? All help appreciated.

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Please make sure the users who added to invite people dialog have a Microsoft account or a work or school account from another Office 365 subscription. And checked “require sign-in”.

Make sure the users sign in with the Microsoft account though the link in the invitation email.

More information refer to the article below:

Turn external sharing on or off for SharePoint Online

Manage external sharing for your SharePoint Online environment

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I had created a Mail Contact within our Exchange Admin Center for the external user I was testing with - this was somehow conflicting when trying to share with the user.

I tested this with a different external user - which worked. I then removed the initial users "Mail Contact" -> re tried and this worked.

So something to note - having a mail contact for an external user can conflict when trying to share a site and or document library...

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