What defines a Virtual Entity in Dynamics 365?

A Virtual Entity in Dynamics 365 is defined as an entity that provides integration with data outside of Dynamics 365. This means that instead of storing the data directly within the Dynamics 365 database, a Virtual Entity connects to an external data source, allowing users to interact with that data as if it were a native part of Dynamics 365.

The setup of a Virtual Entity involves creating a structure that defines how to access the external data, typically through web services or other data services. This allows organizations to leverage data from disparate systems within Dynamics 365 without the need for duplication, thereby streamlining operations and maintaining data integrity.

Using Virtual Entities is particularly beneficial for scenarios where real-time data access is critical or where organizations wish to avoid the overhead of data synchronization between multiple platforms. This approach keeps the Dynamics 365 environment clean while providing flexibility in how and where data is sourced, leading to enhanced functionality and user experience.