Unified D365 Finance Provisioning Explained

  1. Introduction
  2. D365 Finance & SCM as a Native Power Platform Application
    1. Prerequisites
    2. System Requirements
    3. Azure Configuration
    4. Security and Permissions
    5. Power Platform Environment
    6. Role assignment path
    7. Development Tools
  3. Provisioning a Unified D365 Finance & SCM Environment
    1. Power Platform Admin Center (PPAC)
    2. PowerShell Provisioning (Recommended for DevOps Automation)
  4. Visual Studio Configuration
    1. Prerequisites
    2. Install Power Platform Tools
    3. Connect Visual Studio to Dataverse
    4. Automatic vs. Manual Configuration
    5. Key Configuration Fields
  5. Applying Service Updates to a UDE Environment
  6. Conclusion

Microsoft is redefining how Dynamics 365 Finance & Supply Chain Management (D365 Finance & SCM) environments are provisioned, developed, and maintained.

D365 Finance & SCM applications are no longer deployed as isolated ERP systems. They are now native, cloud-based applications running on Microsoft Dataverse, fully integrated with the Power Platform and administered through a unified management interface.

This evolution delivers significant improvements in:

  • Environment provisioning
  • Application Lifecycle Management (ALM)
  • Developer productivity and integration

With the unified administration experience:

  • D365 Finance & SCM runs on Dataverse
  • Power Apps, Power Automate, Copilot Studio, and ERP workloads share the same environment
  • Administration is centralized

This means:

  • No separate ERP infrastructure to manage
  • No fragmented administration tools
  • A single, consistent Power Platform environment for all components

Before setting up a unified D365 Finance & SCM environment, ensure the following prerequisites are met.

  • Local machine with at least 20 GB of free disk space
  • Stable, high-quality internet connection
  • An Azure application registration in Microsoft Entra ID
  • A valid client secret associated with the application
  • The user performing the setup must have Power Platform Administrator rights
  • Permissions can be assigned via the Microsoft 365 Admin Center: https://admin.microsoft.com/
  • The target environment must already exist and be accessible
  • At least 1 to 1.5 GB of free Dataverse capacity
  • The user must have either System Administrator or System Customizer roles
  • https://make.powerapps.com: Power Apps > Environment > Advanced Settings > Security > Users
  • User > Manage Security Roles > Assign System Administrator / System Customizer
  • Visual Studio 2022 (Professional or Enterprise)
  • SQL Server Express / LocalDB (installed by default with Visual Studio)
  • DGML Editor installed in Visual Studio

Access the Power Platform Admin Center and navigate to: Manage > Environments

Create a New Test Environment

  1. Create a new environment
  2. Enable Dataverse
  3. Select an ERP template (Finance, Supply Chain Management, or Project Operations)
  4. Save the environment

Within the newly created environment:

  • Go to Resources > Dynamics 365 apps
  • Install Dynamics 365 Finance and Operations Platform Tools (mandatory prerequisite)
  • Install the Finance and Operations Provisioning App

Installation Options:

  • Enable Developer Tools for X++ to support X++ development
  • Optionally include demo data for testing and validation purposes

⏱️ The installation process typically takes around one hour

PowerShell is the preferred approach for automation and CI/CD pipelines.

Required Module Installation: Install-Module Microsoft.PowerApps.Administration.PowerShell -Force

Environment Provisioning Script (Example)

Add-PowerAppsAccount -Endpoint prod

$Location = “France”

$Region = “francecentral”

$EnvName = “prw-USE-DEV01”  # Max 20 characters

$TemplateMetadata = @”

{

  “PostProvisioningPackages”: [

    {

      “applicationUniqueName”: “msdyn_FinanceAndOperationsProvisioningAppAnchor”,

      “parameters”: “DevToolsEnabled=true|DemoDataEnabled=true”

    }

  ]

}

“@ | ConvertFrom-Json

New-AdminPowerAppEnvironment \

  -DisplayName $EnvName \

  -EnvironmentSku Sandbox \

  -Templates “D365_FinOps_Finance” \

  -TemplateMetadata $TemplateMetadata \

  -LocationName $Location \

  -RegionName $Region \

  -ProvisionDatabase

This automation handles:

  • Activation of development tools
  • Deployment of demo data
  • Post-provisioning ERP configuration
  • Consistent, repeatable environment creation
  • Visual Studio 2022 (Professional or Enterprise)
  • SQL Server Express LocalDB

Validate LocalDB installation: sqllocaldb create MSSQLLocalDB -s

Install Power Platform Tools for Visual Studio 2022 from the Visual Studio Marketplace

  1. Open Visual Studio
  2. Navigate to Tools > Connect to Dataverse or Download Dynamics 365 FinOps assets
  1. Sign in using your developer account
  1. Select the unified sandbox environment
  1. Choose the default solution

Notes:

  • If MFA is enabled, disable all optional connection prompts
  • Guest users from another tenant must download the Finance & Operations extension and metadata

Once connected, Visual Studio downloads:

  • Finance & Operations Visual Studio extension
  • System metadata
  • Cross-reference database

Files are stored under: C:\Users\<UserAccount>\AppData\Local\Microsoft\Dynamics365

⚠️ At least 16 GB of free disk space is required

By default, automatic configuration is enabled and recommended:

  • Metadata extraction
  • X++ compiler and tooling configuration
  • Metadata workspace setup

Advanced users may opt for manual configuration:

  • Manually extract PackagesLocalDirectory
  • Configure metadata via Extensions > Dynamics 365 > Configure Metadata
  • Cross-reference DB: (localdb)\.
  • Metadata folder: X++ modules directory
  • Reference metadata: extracted PackagesLocalDirectory

Only one configuration can be active at a time.

After completion:

  • Open View > Application Explorer
  • Restart Visual Studio if required
  1. Open PPAC > Environments
  2. Select the UDE environment
  3. Go to Resources > Dynamics 365 apps
  4. Open Finance & Operations Provisioning App
  5. Select More actions (⋯) > Manage
  6. Choose the target version and accept the terms

Track progress via Package Manager > Operation History.

Logs can be downloaded for audit or troubleshooting purposes.

Once the status shows Succeeded, the environment is ready.

D365 Finance & SCM is now a native Power Platform application.

Unified environments significantly simplify:

  • Application Lifecycle Management (ALM)
  • DevOps and CI/CD automation
  • Developer onboarding and productivity

Visual Studio tooling is fully cloud-connected and automated, while PowerShell enables repeatable, enterprise-grade provisioning.

If you are still relying on legacy CHE development virtual machines or manual configurations, now is the time to modernize your D365 Finance & SCM platform.