Integrating Dynamics 365 Finance and Operations: A Guide to Integration Essentials Types, Patterns, and Basic Setup

Integrating Dynamics 365 Finance and Operations (D365 FO) with other applications can drive seamless workflows and real-time data accessibility across your organization. This article introduces core integration types, explores the key patterns, and discusses tools like OData, custom web services, the Data Management Framework, Dual Write, and Virtual Entities.

What Is D365 Finance and Operations Integration?

In simple terms, integration is the process of connecting D365 F&O with other applications or platforms to ensure that data flows smoothly and consistently between them. This helps businesses reduce manual data entry, automate workflows, and maintain real-time data across systems.

https://docs.microsoft.com/en-us/dynamics365/fin-ops-core/dev-itpro/data-entities/integration-overview

Types of Integrations in Dynamics 365 FO

In D365 FO, integrations can be categorized into three primary types:

1. Synchronous Integration: Real-time data transfer where systems are instantly updated, suited for tasks needing immediate data consistency. Use Cases: Scenarios requiring immediate data validation and processing, such as real-time inventory updates or order processing. Examples: OData services, custom web services.
2. Asynchronous Integration: Data is transferred in batches, allowing flexibility when immediate synchronization isn’t required. Use Cases: Batch processing, data migration, and scenarios where immediate response is not critical. Examples: Data Management Framework API, Recurring Integration Scheduler.
3. Hybrid Integration: Combines both synchronous and asynchronous methods to leverage the benefits of both approaches. Use Cases: Complex scenarios requiring real-time data validation followed by batch processing for large data sets. Examples: Dual Write, Virtual Entities.

Integration Patterns in D365 F&O

1. OData (Open Data Protocol)

OData is a widely used protocol for synchronous integrations, supporting RESTful CRUD (Create, Read, Update, Delete) operations. D365 FO uses OData services to connect with external applications and supports secure HTTPS connections. Commonly used for integrating with mobile or web apps, OData works well for real-time updates where immediate data reflection is needed.

More info: https://docs.microsoft.com/en-us/dynamics365/fin-ops-core/dev-itpro/data-entities/odata

2. Custom Web Services

For tailored requirements, D365 FO allows the creation of custom web services, offering the flexibility to expose specific business logic in X++. These services are useful for legacy system integrations, supporting SOAP and RESTful JSON. Custom web services are often chosen when business rules demand a unique, synchronous data flow with specialized configurations.

More info: https://docs.microsoft.com/en-us/dynamics365/fin-ops-core/dev-itpro/data-entities/custom-services

3. Data Management Framework (DMF)

The Data Management Framework is D365 FO’s primary asynchronous integration tool, designed to handle high data volumes effectively. DMF offers two primary options:

• Package API: Supports bulk imports/exports, ideal for initial data setups or large updates.
• Recurring Integration Scheduler: Enables scheduled data syncing, ensuring regular updates without manual intervention.

These APIs make it easy to integrate D365 FO with applications that require periodic data refreshes, such as updating product catalogs or synchronizing transactions.

More info : https://docs.microsoft.com/en-us/dynamics365/fin-ops-core/dev-itpro/data-entities/data-entities-data-packages

4. Recurring Integration API

The Recurring Integration API within the Data Management Framework is optimized for managing regular, scheduled data flows between systems. This asynchronous API is ideal when handling data processing at set intervals, as it allows precise control over data import/export schedules, reducing resource strain on the system.

More info : https://docs.microsoft.com/en-us/dynamics365/fin-ops-core/dev-itpro/data-entities/recurring-integrations

5. Dual Write

Dual Write enables seamless, near-real-time data flow between D365 FO and Dataverse. This integration is bidirectional, meaning any data changes in D365 FO or Dataverse are automatically synchronized. Dual Write provides a unified view across customer engagement and finance apps, making it particularly useful for businesses aiming for an interconnected CRM and ERP system.

More info: https://docs.microsoft.com/en-nz/dynamics365/fin-ops-core/dev-itpro/data-entities/dual-write/dual-write-home-page

6. Virtual Entities

Virtual Entities allow real-time data access from external sources without physical storage in D365 FO. Data is viewed and interacted with directly in D365 FO, appearing as if it were native to the system. This pattern is perfect for cases where high-frequency data access is needed without replication, such as IoT or real-time analytics.

7. Event-Driven Architecture

D365 FO supports event-driven integration using Business Events and Data Events:

• Business Events: Trigger actions based on specific business activities, like invoicing or sales order completion. These events can be handled by external systems via tools like Azure Event Grid or Logic Apps.
• Data Events: Enable updates when data entities are modified, facilitating near real-time data integration.

Event-driven patterns are especially valuable for connecting to external apps without excessive system calls or resource demands.

More info: https://docs.microsoft.com/en-us/dynamics365/fin-ops-core/dev-itpro/business-events/home-page

8. Other Tools for Hybrid Integrations

In cases where on-premises systems need integration, Azure Data Gateway and Azure API Management allow secure communication between cloud-based D365 FO and on-premises databases. These tools are key to hybrid setups, preserving data security and access control while enabling modern, flexible integrations.

Setting Up Integrations in D365 FO

1. Define Integration Needs: Start by identifying the data requirements and usage frequency. Real-time data calls should use synchronous patterns, while bulk updates are better suited to asynchronous methods.
2. Choose the Right Pattern: Each pattern has strengths and use cases—select one based on data volume, required frequency, and business urgency.
3. Security and Compliance: Use Microsoft Entra ID (Azure AD) to set up authentication and authorization, ensuring all integrations align with security standards.
4. Performance Testing: Test integrations under different loads to ensure stability and efficiency. Factor in potential peak data loads and design integration schedules to avoid bottlenecks.

Why Integration Matters

Integrations in Dynamics 365 FO provide the flexibility to create a connected ecosystem that supports your organization’s data needs. By leveraging synchronous patterns like OData for real-time updates, asynchronous tools like the Data Management Framework for bulk processing, and hybrid integration tools for secure connectivity, you can customize data flow across systems. Incorporating Dual Write and Virtual Entities further enables businesses to maintain synchronized data without sacrificing performance, positioning your systems for streamlined, data-driven operations.

Here is the link to my article on Understanding Data Entities in Dynamics 365 Finance and Operations || Part -1 : https://www.dhirubhai.net/pulse/understanding-data-entities-dynamics-365-finance-part-gadisetti-pvlbc

As a beginner in Microsoft Dynamics 365, I am continuously learning and refining my knowledge, and this article reflects insights from various online resources. I welcome any feedback or suggestions for best practices that could enhance the accuracy and clarity of my work. Thank you for reading, and I hope this guide serves as a helpful starting point for understanding Dynamics 365 Finance and Operations integrations.

Dinesh Srinivas Gadisetti