Custom Development in Dynamics 365: Detailed Explanation and Use Cases

Custom development in Dynamics 365 involves multiple approaches, each suited for different requirements. Below is a detailed breakdown of each method along with their use cases.

Plugin

Overview

Server-side (C#) custom code executed within Dynamics 365
Hooks into platform events (Create, Update, Delete, etc.) to implement business logic
Can run in Pre-validation, Pre-operation, and Post-operation stages

Use Cases

✅ Auto-populating or validating data

When a new account is created, automatically create associated contacts

✅ Transactional integrity

If an Opportunity is won, automatically convert related Quotes to Orders

✅ External system integration

Notify an external system via Azure Service Bus whenever a record is updated

JavaScript (JS)

Overview

Client-side script running in the browser
Used for dynamic UI updates, form customizations, and validations
Can call Web API to retrieve or update data

Use Cases

✅ Dynamic form control

If an Opportunity value exceeds a certain amount, mark specific fields as required

✅ Real-time validation

Validate email format before saving a Contact record

✅ Fetching and updating data in real-time

Auto-fill the address when selecting an existing Account

WebResource

Overview

Stores JavaScript, HTML, CSS, images, XML, etc.
Used to implement custom UI and logic beyond standard form customizations

Use Cases

✅ Custom search panels

Create a custom search UI to retrieve CRM data more efficiently

✅ Advanced charts and visualization

Implement custom dashboards that offer better control than Power BI

✅ Embedded media files

Show product images or videos on entity forms

Power Automate (Formerly Microsoft Flow)

Overview

Low-code/no-code workflow automation tool
Triggers actions based on data changes in Dynamics 365
Easily integrates with other Microsoft and third-party applications

Use Cases

✅ Automated quote processing

When a deal is closed, automatically generate a PDF quote and email it to the customer

✅ Approval workflows

Send approval requests to managers when a contract is created

✅ Third-party system integrations

Sync customer data between Salesforce and Dynamics 365

Azure Functions / Logic Apps

Overview

Used for advanced server-side integrations with external systems
Azure Functions allows C#/JavaScript-based serverless processing
Logic Apps provides low-code API orchestration

Use Cases

✅ Batch processing

Sync customer records between Dynamics 365 and an external database every night

✅ Third-party API integration

Sync CRM records with Salesforce, SAP, or other external applications

✅ AI-powered automation

Use Azure OpenAI to analyze and categorize incoming customer support requests

PCF (PowerApps Component Framework)

Overview

Enables building custom UI components for Dynamics 365
Uses JavaScript/TypeScript and frameworks like React
Works in both model-driven and canvas apps

Use Cases

✅ Custom input controls

Implement an interactive slider or drag-and-drop feature for data input

✅ Real-time charts and visualization

Display real-time data in a more user-friendly format

✅ External data integration

Embed Google Maps to show customer locations directly in a form

Custom API (Formerly Custom Action)

Overview

Customizes Dynamics 365 Web API by adding new endpoints
Allows other systems and workflows to call custom logic

Use Cases

✅ Custom business processes

Define a custom API for triggering workflow actions across multiple entities

✅ External system communication

Expose a REST API for an ERP system to retrieve order details

✅ Complex bulk operations

Enable external applications to perform bulk updates to CRM data efficiently

Virtual Entities

Overview

Allows real-time access to external data without importing it into Dynamics 365
Displays external data as if it were a native CRM entity

Use Cases

✅ Viewing external CRM data within Dynamics 365

Display Salesforce customer data inside Dynamics 365 without data duplication

✅ ERP integration

Show SAP inventory data in Dynamics 365 without syncing records

✅ Reducing unnecessary data storage

Query large external datasets in real-time without storing them in CRM

Embedded Canvas App

Overview

Embeds a canvas app inside a Dynamics 365 form
Enables more flexible UI and interactions

Use Cases

✅ Custom order management UI

Create an interactive PowerApps form for entering sales orders

✅ External data visualization

Display SharePoint-stored contract documents within Dynamics 365

✅ Customer engagement optimization

Integrate messaging platforms like WhatsApp or LINE directly within CRM

Summary of Custom Development Options in Dynamics 365

Method	Primary Use
Plugin	Server-side business logic and automation
JavaScript	Client-side form and UI customization
WebResource	Custom UI elements and scripts
Power Automate	Low-code workflow automation
Azure Functions	Advanced external integrations and processing
PCF	Custom UI components
Custom API	Extending Dynamics 365 API functionality
Virtual Entities	Displaying external data in real-time
Embedded Canvas App	Integrating custom PowerApps into forms