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What is a data entity and why is it needed in Dynamics 365?

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A data entity is a logical abstraction that represents business data in a flattened, consumable format. Since Dynamics 365 uses a highly normalized database, data entities simplify data exchange by combining data from one or more related tables. They are essential for:

  • Data migration

  • Integrations

  • Excel add-in usage

  • OData and batch imports/exports

Example: A Sales order entity combines header and line tables into a single structure.