What is the characteristic of a 'Data entity' in terms of integration?

A data entity plays a crucial role in facilitating integration between Microsoft Dynamics systems and external applications or services. By simplifying the integration process, data entities provide a standardized structure that can easily interface with various systems, allowing for efficient data exchange without the need for extensive customization. This structured approach enables developers and integrators to define, manage, and utilize data models that align with external requirements, which streamlines the workflow involved in data transfer and synchronization.

The functionality of data entities is designed to encapsulate business logic, data transformations, and validations, making them particularly powerful for integrations. They handle complex relationships between data elements, reducing the complexity often encountered when integrating with diverse external systems. By providing a clear set of data structures and operations, data entities make it easier for developers to build, modify, and maintain integrations over time, ensuring that data flows smoothly between different systems.

In contrast, other options misrepresent the capabilities and purposes of data entities. They are not limited to internal data management or focused solely on reporting, as their primary strength lies in their integration capabilities. Additionally, data entities do incorporate data validations to ensure data integrity during the integration processes.