How to disable the Public Sector solution when using Microsoft Dynamics AX 2012 Feature Pack

Recently we have had a few discussions around how we can safely disable Public Sector industry solution when using Microsoft Dynamics AX 2012 Feature Pack release. We wanted to do this on a test system which we had recently upgraded from AX 2012 RTM to AX 2012 Feature Pack.

Just to give you a background in Microsoft Dynamics AX 2012 RTM, each of the industry solutions like Public Sector, Process Industries, Service Industries existed as a separate solution models (in the FPK layer). However in Dynamics AX 2012 Feature Pack it combines the functionality of all these three industries plus adds an additional Retail industry solution into a single "Extensions" solution model as outlined in this blog article:
http://blogs.technet.com/b/dynamicsaxse/archive/2012/05/08/dynamics-ax-2012-feature-pack-servicing.aspx

Furthermore removing the Extensions model was NOT an option as this is NOT a supported workaround. This is also detailed under the installation notes for Install the Microsoft Dynamics AX databases [AX 2012], see section titled "Prepare to install model files". Here is a snippet from this article detailing the Important note for the  Extensions model:
This model is required when you install Microsoft Dynamics AX 2012 Feature Pack. If the model includes functionality that you do not plan to use, turn off the appropriate license codes and configuration keys. Do not uninstall this model to remove unwanted functionality. Uninstalling models that are released by Microsoft will place your system in an unsupported state. If you have uninstalled this model, you must reinstall it using the instructions found in How to: Export and Import a Model.

Following from this note, we were able to disable/remove the Public Sector solution on our test systems as follows:
(1) First we shutdown all AOS service instances and took a full backup of our existing Dynamics AX Database. Than we restarted an AOS instance and ran the AX Client.
(2) . Then launched the License Configuration form (System administration > Setup > Licensing > License configuration):


(3) In the License configuration form, under Public sector, we de-activated the license sub-keys and clicked on OK:


(4) We than get the following License and configuration differences form displayed. We clicked on OK again:


(5) Now there is a Dialog that prompts us to Synchronize the database. However we opted NOT to synchronize the database for now, and clicked No (we will synchronize later on):

(6) Than we launched up the License information form (System administration > Setup > Licensing > License information):


(7) In the License information form, we select the Feature sets tab:


(8) Than we located the License code that we want to deactivate, Public Sector in this case:


(9) and we than deleted the License code (given as a series of asterix):


(10) and clicked on Close to close the license information form:


(11) We than get a License and configuration differences form displayed. We clicked OK on this form:


(11) Now, we once again get a prompt to synchronize the database. This time we did click on Yes to synchronize.

(12) After the database was synchronized, we ran a full compile and IL generation.

(13) We also redeployed all the reports again (see Deploy the Reports section in http://msdn.microsoft.com/EN-US/library/hh389771)