This article explains what data entities are in Microsoft Dynamics 365, their main functions, and how they are used in development, integration, and data management scenarios. It also covers the types of data entities, how they are built, and their role in different business processes.
What Is a Data Entity?
A data entity is a logical representation of data from one or more database tables. Instead of dealing with multiple related tables directly (such as in a normalized database), a data entity provides a de-normalized view—combining related data into a single, easy-to-use structure.
For example, customer information might be stored across several tables (like CustTable
, DirParty
, LogisticsPostalAddress
). A customer data entity merges this information into one simplified view, making it easier to read, write, and integrate customer data.
Data entities help:
Simplify development and integrations.
Isolate application code from frequent changes in table structures.
Encapsulate business concepts in a developer-friendly format.
Key Capabilities of Data Entities
Unified Concept: Replaces older concepts like AXD, DIXF, and aggregate queries.
Single Development Stack: Central point for business logic, data import/export, and integration.
ALM Support: Primary mechanism for managing data packages during deployments.
OData Services: Can be exposed as OData endpoints for real-time integrations and Excel add-ins.
Simplified Read/Write: Makes complex data operations easier by abstracting table relationships.
Example Scenario: Customer Entity
Customer data is often split across tables like DirParty
, CustTable
, and address-related tables. This makes accessing or modifying customer data complex. By using a Customer data entity, all this information can be viewed and managed as a single, unified structure.

Integration Scenarios
1. Synchronous Integration (OData):
Office Add-ins (Excel)
Third-party mobile or web applications
Real-time APIs
2. Asynchronous Integration:
File-based data import/export
Recurring integrations (via queues, files, etc.)
High-volume data migration
3. Business Intelligence (BI):
Access to aggregated data
Standard KPIs and metrics
Role in Application Lifecycle Management (ALM)
Data entities support key ALM scenarios, including:
Configuration Data Provisioning: Use data entities to set up system parameters and reference data during initial deployment via LCS.
Data Migration: Move master and transactional data (e.g., customers, vendors, sales orders) from legacy systems into Dynamics 365.

Common Built-in Data Entities
Here are some examples of frequently used data entities:
Accounts Receivable
Customer definitions
Sales order headers and lines
Accounts Payable
Vendor invoice headers and lines
Product Management
Products and Released Products
Types of Data Entities
Data entities are categorized based on their purpose and data type:
Parameter
Used to configure modules or systems.
Often single-record tables with settings (e.g., GL parameters).
Reference
Static lookup data (e.g., tax codes, units).
Small datasets used across processes.
Master
Core business entities like customers, vendors, and products.
Typically larger and more complex datasets.
Document
Transactional templates (e.g., sales orders, journals).
Contain headers and multiple line items.
Transaction
Posted or completed business transactions (e.g., invoices, balances).
Generally excluded from full data migration due to volume and complexity.
How to Build a Data Entity
There are two main ways to create data entities:
1. Using the Wizard (Recommended for Beginners)
Add a new Data Entity item to your project.
Select the primary table (root data source).
Choose related tables and fields.
Set properties like:
Entity name and category (Parameter, Master, etc.)
Public API access
Data management support
Staging table configuration
2. Manually Adding Data Sources
You can enhance the entity by adding more data sources, either manually or by selecting fields that point to related tables.
Output of Entity Creation
When you build a data entity, the system creates:
The data entity itself.
An optional staging table for import/export scenarios (if data management is enabled).
Summary
Data entities are essential in Dynamics 365 for simplifying data access, integration, and migration. They allow developers to work with complex business data in an abstracted, easier-to-use format. Whether you’re importing legacy data, integrating with external systems, or exposing data through APIs, data entities offer a flexible and powerful solution