A data entity is an abstraction over underlying tables and a simplified projection of the schema that is more conceptual in nature than the physical tables underneath. All business logic resides in the entity or in the underlying tables. Entities can expose both relational as well as aggregate data.

To summarize this, data entities provide conceptual abstraction and encapsulation (denormalized view) of the underlying table schema to represent key data concepts and functionalities.

The following diagram shows the current normalized model for customer data in Dynamics 365 for Finance and Operations and the corresponding denormalized customer entity:

The following are the key highlights regarding data entities in Dynamics 365 for Finance and Operations:

• First-class citizens and defined as metadata objects.
• In the database layer, data entities are represented as updatable views.
• Serves multiple purposes, such as OData services, recurring integrations, Office integration, and data management.