Downgrade rights will not with user allocation on entitlementIssue You have 2 allocations for example Photoshop CS 2 and downgrade rights on Photoshop CS3. You have allocated 2 users in Photoshop CS 2 and trying add one more user to use the downgrade rights in Photoshop CS 3 but you get an error -"Cannot allocate more licenses than available rights."ResolutionIf you try adding allocations more than the purchased rights then it will throw an error and abort as below. "Cannot allocate more licenses than available rights." This is expected. In OOB, we have the Business Rule: "Ensure Entitlements do not exceed rights" which checks the availability of the rights. For downgrade rights to be considered, reconciliation will allow you to allocate up to the the number of rights purchased. You can not manually add the allocation.Related Linkshttps://www.servicenow.com/community/sam-forum/cannot-allocate-more-licenses-than-rights/m-p/1337894