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Factory Labs + Microsoft Dynamics 365 Integration

How Factory Labs integrates with Microsoft Dynamics 365 Business Central and Finance & Operations. Live order, inventory, and pricing reads via the Dynamics gateway service, with Entra ID SSO and Microsoft Graph for productivity.

Updated 2026-05-17 Β· Official Microsoft Dynamics 365 site

Factory Labs integrates with Microsoft Dynamics 365 Business Central and Finance & Operations as a live ERP source. The Dynamics gateway speaks the Dynamics OData v4 surface and the Dataverse API, surfacing Dynamics records as live account data inside the Factory CRM. Entra ID (formerly Azure AD) is supported for SSO on top.

What we support

The Factory Labs Dynamics gateway works with:

  • Dynamics 365 Business Central (Online). OData v4. The most common Dynamics ERP for mid-market distributors.
  • Dynamics 365 Business Central (On-premise). OData v4 via Service Tier. Requires firewall and Service Tier configuration.
  • Dynamics 365 Finance & Operations (Cloud). OData v4 and Dataverse virtual entities.
  • Dynamics 365 Customer Engagement entities (read-only). For deployments where Dynamics 365 Sales / CE is being phased out but historical opportunities and activities should remain readable during transition.

What the integration does

Factory's account view live-queries Dynamics for:

  • Sales orders. Open orders, posted orders, lines with item-level pricing, shipping status.
  • Items and warehouses. Inventory by location, item availability, lead times, item attribute data.
  • Customer master. Customer card, contacts, ship-to addresses, payment terms, credit limit.
  • Sales prices. Price lists per customer, sales line discounts, contract pricing.
  • Invoices and payments. A/R aging, payment history, open invoices.

Write-back: sales order creation, customer master updates, lead/opportunity-to-order conversion that lands a real Dynamics SO with the right item lines.

How it works

The Factory Dynamics gateway:

  1. Authenticates with Dynamics via OAuth 2.0 (client credentials flow for service-to-service) using an Entra ID app registration.
  2. Translates Factory's normalized Account / Contact / Opportunity shape into Dynamics OData v4 queries on demand.
  3. Caches per-resource with short TTLs to keep page renders fast without becoming a second copy.
  4. Maps Dynamics custom fields (custom columns on Customer, Sales Order, Item, etc.) into Factory's JSONB custom-field surface.
  5. Surfaces Dataverse virtual table data when the deployment uses it, particularly for Finance & Operations.

If your tenant uses Power Automate flows for downstream automation, those continue to work; Factory does not interfere with the Power Platform layer.

How to set it up

  1. Register an Entra ID app. Microsoft Entra admin center β†’ App registrations β†’ New. Note the tenant ID, client ID, client secret.
  2. Grant API permissions. For Business Central: Financials.ReadWrite.All (and grant admin consent). For F&O: appropriate Dataverse + custom permissions per your security model.
  3. Add the Entra service principal to Dynamics. In Business Central, Users β†’ New User with the app's client ID as the user identifier; assign a permission set (or build a custom one scoped to read + sales order write).
  4. Connect Factory. Settings β†’ Integrations β†’ ERP β†’ Dynamics 365. Paste tenant ID, client ID, client secret, environment (BC instance or F&O endpoint). Test.

Setup time: 60-90 minutes for BC Online, 2-3 hours for on-premise or F&O depending on existing Entra and permission-set hygiene.

Where it sits if you already have Dynamics 365 Sales

If you have Dynamics 365 Sales today and are evaluating a move to Factory Labs:

  • Factory imports your Sales records (Accounts, Contacts, Opportunities, Cases) through the migration utility.
  • The Dynamics ERP integration continues against BC or F&O without change; only the CRM layer moves.
  • You can run both Factory and D365 Sales side by side during transition, with Factory reading from D365 Sales as a data source until the cutover.

See Factory Labs vs Dynamics 365 Sales for the long-form comparison.

Pricing notes

The Dynamics gateway is part of Factory Labs Growth ($45/user/month) and up. No per-tenant connector fee, no per-record sync charge.

If you are currently running a Salesforce-to-Dynamics integration via a partner connector or iPaaS, the connector + license stack typically runs $1,500-4,000/month all-in for a mid-market distributor. Factory's gateway replaces that line item entirely.

Frequently asked questions

Does Factory Labs require us to be on Entra ID? For the Dynamics integration, yes (Entra is how the gateway authenticates to Dynamics). For Factory Labs sign-in itself, no; Factory supports any OIDC or SAML identity provider, with Entra ID as one supported option.

What about Power BI? Power BI can read Factory Labs data through the Delta Sharing surface or through the public REST API. Either way, no separate connector to install.

Does the integration support multiple BC companies? Yes. Multiple companies in the same BC tenant can be wired to one Factory tenant, with role-based scoping in Factory controlling which users see which company.

What about Dynamics GP or Dynamics NAV? Dynamics GP is end-of-life from Microsoft (mainstream support ended; extended support continues into the late 2020s). NAV migrations to BC are well-trodden. We do not have a first-party GP or pre-BC NAV gateway today; if there is demand we will build one.

How does Copilot for Sales relate to the Factory Assistant? They are separate products. Copilot for Sales runs inside Outlook and Teams against Dynamics 365 Sales data. Factory's Assistant runs inside Factory CRM with MCP tool-use that includes the Dynamics gateway. The two can coexist; most teams pick one as the daily driver.