How do you define a new custom field in a Dynamics 365 entity?

Defining a new custom field in a Dynamics 365 entity is accomplished by modifying the entity's properties in the Application Explorer. This is the integrated development environment provided within Dynamics 365 where developers can access entities and their structure. By using the Application Explorer, you can directly access the entity you wish to modify, and then add custom fields, alter existing fields, or change other properties related to the entity.

This method allows for seamless integration of the custom fields into the existing Dynamics 365 framework, ensuring compatibility and adherence to system standards. Utilizing the Application Explorer is essential for maintaining functionality and performance across the Dynamics platform. The ability to customize fields directly within the entity structure supports the tailored development process needed to meet specific business requirements effectively.