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Distribution list created with on-site AD how to mail enable it in O365

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Our NAV accounting system requires permissions to be assigned via a valid email address.

So I have created a dist list with our on-site AD in Win 2008 R2 and once it appeared in O365 am now trying to mail enable the distribution list. ( I had a few issues with it not appearing in O365 but after searching Google it appears I had to fill in a few custom attributes such as mail address which was starange since I don't have an on-site exchange server - http://www.gregpakes.co.uk/2012/08/office-365-directory-sync-not-syncing-distribution-groups/ )

Anyone any ideas as the Dist group now show up in 0365 but I can't add a license to it to mail enable it.

Thanks


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