MS Dynamics 365 Common Data Model Explained

Microsoft Dynamics 365 Common Data Model Explained

The Microsoft Common Data Model (CDM) provides a standardized set of schemas. These include entities, attributes, relationships, and semantic metadata that represent common business concepts across various industries.

CDM serves as the foundation for Dynamics 365 and Microsoft Dataverse. Key benefits include:

• Shared entities that allow for seamless updates.
• Instant visibility of customer records across Sales, Service, Finance, and Marketing.
• No synchronization is required for these updates.

Key facts

• CDM is an open-standard schema library published by Microsoft on GitHub.
• Standard entities include: Account, Contact, Lead, Opportunity, Order, Invoice, Case.
• CDM is the schema layer underneath Microsoft Dataverse (formerly Common Data Service).
• All Dynamics 365 apps share the same CDM — no integration or sync between modules.
• Power Platform (Power Apps, Power Automate, Power BI) reads and writes to the same CDM tables.
• EPC Group: 29 years Microsoft consulting. 11,000+ enterprise engagements.

What the Common Data Model includes

CDM defines standard entities that map to universal business objects. Each entity has a standard set of attributes and relationships.

• Account — organization or company. Parent of Contacts, Opportunities, and Cases.
• Contact — individual person. Related to Account, Lead, and Opportunity.
• Lead — unqualified prospect. Converts to Account, Contact, and Opportunity.
• Opportunity — active sales deal. Links to Account, Contact, and Products.
• Order — confirmed sale. Links to Opportunity, Products, and Invoice.
• Case — customer service issue. Links to Account, Contact, and Knowledge Articles.
• Custom entities — extend CDM for industry-specific data without breaking standard integrations.

How Dynamics 365 uses CDM

Dynamics 365 apps share the CDM schema inside Dataverse. This eliminates integration overhead.

• Sales updates an Account record. Service and Finance see the change immediately — no API call, no sync job.
• Field Service reads the same Account and Contact entities as Sales and Customer Service.
• Marketing segments on Account and Contact attributes set by Sales.

Because all modules share the same Account and Contact entities, you get one version of truth across the organization.

Dynamics 365 pricing in 2026

Dynamics 365 is sold across three commercial app families. Pricing varies by module.

• Customer Engagement (Sales, Customer Service, Field Service, Marketing): $65–$210/user/month.
• Finance and Operations (Finance, Supply Chain Management, Commerce, HR): $180–$210/user/month.
• Business Central (small/midsize ERP): $70–$100/user/month.

Power Platform and CDM integration

Power Platform reads and writes directly to CDM tables in Dataverse. This is the biggest Dynamics 365 differentiator versus Salesforce in 2026.

• Power Automate — trigger workflows on CDM entity changes without custom code.
• Power Apps — build custom screens that read and write CDM tables directly.
• Copilot Studio — build AI agents that query and update CDM entities conversationally.
• Power BI — connect to Dataverse and CDM tables for operational analytics.

Frequently asked questions

What is the Microsoft Common Data Model?

The Common Data Model (CDM) is a standardized schema library that defines entities, attributes, and relationships for common business concepts — like Account, Contact, and Order. It is the data layer underneath Dynamics 365 and Microsoft Dataverse.

What is the difference between CDM and Dataverse?

CDM is the schema standard. Dataverse is the cloud database that uses CDM to store data in tables defined by this standard. Power Platform and Dynamics 365 apps access Dataverse to read and write data using the CDM schema.

Can I extend the Common Data Model with custom entities?

Yes, Dataverse supports custom entities, custom columns, and custom relationships. These features extend the Common Data Model (CDM) without disrupting standard integrations.

EPC Group specializes in designing custom entity extensions tailored for specific industries, including:

• Healthcare
• Financial services
• Government

How does CDM compare to Salesforce's data model?

Both systems use standard entities like Account, Contact, and Opportunity. However, there is a key difference between them:

• Common Data Model (CDM): CDM is shared across all Dynamics 365 and Power Platform apps natively.
• Salesforce: Integrations with external tools require API development.

CDM provides Dynamics 365 with a native integration advantage within the Microsoft ecosystem.

Schedule a consultation

EPC Group designs and implements Dynamics 365 and Dataverse solutions built on the Common Data Model. Call (888) 381-9725 or request a 30-minute discovery call.