Business Central Dataverse Connection Setup Step by Step | 2025

Do you know that going for a Business Central Dataverse connection setup can be a boon for your business? Do you want to know how? You are reading this blog, which means you use Dynamics Business Central and other applications to support your daily operations.

However, using multiple applications has challenges, like data silos, manual data entry, and inconsistent data. Thus, the Dataverse is a single source of truth for sharing data across applications.

Going for Business Central Dataverse connection setup is the first step to ensure seamless integration with other applications. Data from all the applications is stored in Dataverse and synchronized across applications in real time. This allows you to utilize the data for the intended requirements, like creating sales order quotes or maintaining accurate customer records.

In this article, we will explore step-by-step guide for Business Central Dataverse connection setup and its benefits. Let’s understand Microsoft Dataverse first!

What Is Microsoft Dataverse?

Microsoft Dataverse is a cloud-based data storage platform that enables the secure management of business data across applications. Data is organized in tables containing rows (records) and columns (fields) designed for specific data types, such as customer names, invoice amounts, and inventory details.

You may use the default set of pre-defined standard tables, or you can create a customized table for business needs. Its easy integration with Business Central, Power Apps, Power Automate, and Power BI guarantees the integrity of your data across the platform.

What are the Prerequisites for Integration?

Certain prerequisites should be fulfilled before integrating Business Central and Dataverse. These prerequisites ensure a smooth and error-free setup process:

1. Dataverse Environment URL: The URL for the Dataverse environment that Business Central will connect to.

2. Administrative Access: Users must have administrator credentials for both Business Central and Dataverse environments.

3. Environment Readiness: Verify that the Dataverse environment is not in "Administration" mode, which could cause connection issues.

4. Currency Alignment: Ensure the base currency in Dynamics 365 Business Central matches the one in Dataverse to maintain data consistency.

5. Licensing Requirements: Ensure the Microsoft Dynamics 365 license supports Business Central-Dataverse integration, with at least the 2020 release wave 1, version 16.5.

How to Integrate Dynamics Business Central with Dataverse

Setting up the Dataverse Business Central connection can be done through two ways: Assisted Setup Guide and Manual Setup.

Using the Assisted Setup Guide: Steps

Microsoft provides an Assisted Setup guide within Business Central that simplifies the process of connecting to Dataverse.

• Navigate to Business Central > Setup & Extensions > Assisted Setup.
• Select “Set up a connection to Dataverse.”
• Provide the Dataverse environment URL.
• Authenticate using your Microsoft credentials.
• Choose between User or Team-based ownership for synchronized records.
• Review and confirm the settings.
• Verify the settings and click Finish to complete the setup.

Manual Setup via Dataverse Connection Setup Page: Steps

For those who prefer manual configuration or need advanced settings, follow these steps:

• Open Business Central and go to Dataverse Connection Setup.
• Enter the Dataverse Environment URL.
• Provide the necessary authentication details.
• Configure additional settings such as synchronization frequency.
• Click Test Connection to ensure the setup is successful.
• Save the settings and enable the integration to start data synchronization.

Data Synchronization & Table Mapping

When integrating Dynamics 365 Business Central with Dataverse, proper data synchronization and table mapping are essential to ensure seamless data exchange.

Data Synchronization

Data synchronization determines how information flows between Business Central and Dataverse. There are:

One-Way Synchronization

Data flows from Business Central → Dataverse or Dataverse → Business Central, but not both. For example, product records created at Business Central can sync to Dataverse but not vice versa.

Two-Way Synchronization

Changes in both systems are synchronized. For example, customer details at Microsoft Dynamics 365 Business Central are updated in Dataverse, and vice versa.

Incremental Synchronization

Instead of syncing the entire dataset, only modified or newly created records are synchronized using the "Modified On" timestamp.

Table Mapping

Table mapping ensures data consistency between Business Central and Dataverse. Key considerations include:

Data Filtering

Only relevant records are synchronized. For instance, only "Sellable Inventory" active items should be synced.

Data Transformation

Some fields require format changes before syncing. For instance, Business Central uses Currency Codes, while Dataverse may require Currency Names.

Default Field Values

Some fields may not exist in both systems. For example, Microsoft Dynamics 365 Business Central may require an Inventory Posting Group, which Dataverse does not have.

Benefits of Setting Up Business Central Dataverse Integration

Business Central Dataverse integration provides several advantages, making data management more efficient and reliable.

Data Consistency and Accuracy

Business Central Dataverse sync ensures the integrity and accuracy of the data functioning on different platforms. It eliminates lengthy, error-prone manual data entry. Consistent data further enables one single source of truth, vital for any informed business decisions.

Improved Operative Efficiency

Automating the data flow between your systems saves a huge amount of time and effort. For instance, you have completed Business Central with Sales integration. When a sales order is placed into Dynamics 365 Sales, stock levels are automatically updated in Business Central. This carries out a streamlined process that would eliminate redundancy and allow employees to concentrate more on the strategic side instead of performing repetitive data entry.

Business Intelligence on Demand

A Dataverse Business Central combination will give you visibility in your business data to consolidate reports and analytics. These will yield rich reports and insights in regard to aspects such as sales performance, customer behaviors, and stock management. Armed with the resultant insights, management will be able to harness this power to make data-driven decisions, in turn, driving growth and efficiency.

Seamless Integration with Microsoft Ecosystem

Dataverse integrates seamlessly into other Microsoft solutions, e.g., Power Apps, Power Automate, and Power BI. Integration allows you to create custom apps that are in line with your business requirements, automate workflows to improve productivity, and create dashboards that power business intelligence. By bundling such integration capabilities, the overall Microsoft ecosystem enhances your agility and responsiveness.

Robust Security Features

Dataverse has some of the most robust security features, such as role-based access control and data encryption. The unique feature enables authorized users to access data only. This also helps you save sensitive business information and enhances data privacy and compliance statuses.

Common Challenges & Solutions

Despite the benefits, businesses may face some challenges when integrating Business Central with Dataverse. Here’s how to overcome them:

How Can Dynamics Square Help?

Setting up and managing Business Central Dataverse integration requires expertise. Dynamics Square, a leading Microsoft Partner in Ontario, helps you with any uncertain challenges you face during integration.

We have a team of 135+ consultants that assist you in integration. If you require help developing custom tables, we are here to help you.

Call us at +1 778 381 5388 or write us an email at info@dynamicssquare.ca if you have any trouble regarding integration.

People Also Ask:

1. What is the Business Central Dataverse?

This cloud platform for data services, Microsoft Dataverse, is an essential tool in integrating Business Central with various other applications. It allows Microsoft Dataverse to suit efficient data management and synchronization that speeds up business processes.

2. How is Dataverse different from a traditional database?

While conventional databases often do not entail this, Dataverse can provide inherent scalability, security, and integration within the Microsoft ecosystem. It offers a more extensive scope for modeling complex data relationships and introducing business logic, making Business Central Dataverse seamless integration easier.

3. Is Dataverse included in Office 365?

Of course, it is not bundled with Office 365 by default. Some Microsoft Power Platform and Dynamics 365 plans include it as part of the package. Organizations will have to understand their licensing in order to set up the Business Central Dataverse connection.

4. Why use Dataverse instead of SharePoint?

While SharePoint supports basic data requirements using complex applications, Dataverse is better suited for advanced data storage and security reasons. This allows the business processes to be set up using detailed configurations. Moreover, sharing information in Business Central Dataverse gets much quicker with Dataverse.

5. Does Business Central use Dataverse?

Yes, Dynamics 365 Business Central makes use of Dataverse to connect with the other Dynamics 365 applications that support smooth data sync and unified business processes.