---
sourceDocument: Zurich IT Asset Management
sourceDocumentLink: https://www.servicenow.com/docs/r/zurich/it-asset-management

 Release :

    - zurich

ft:locale :

    - en-US

ft:publication_title :

    - Zurich IT Asset Management

ft:clusterId :

    - itam

bundleId :

    - itam

workflow :

    - Technology


---

# Integrating with Microsoft Dynamics 365 and Power Apps

# Integrating with Microsoft Dynamics 365 and Power Apps {#ariaid-title1}

* Release version: Zurich
* 
* Updated July 31, 2025
* 
* ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 8 minutes to read

Integrating your ServiceNow instance with the Microsoft Dynamics 365 and Power Apps service enables you to track your software subscriptions and to reclaim unused licenses.  
Important:  
This integration retrieves user subscription details for all Microsoft Dynamics 365 and Power Apps products. Furthermore, Software Asset Management provides license compliance for the products using user subscription-based models.  
For optimization, Software Asset Management automatically tracks the last activity date and identifies low-usage for the following applications:

* Dynamics 365 for Sales (Professional, Premium, Enterprise)
* Dynamics 365 for Customer Service (Professional, Enterprise, Enterprise for Government, Professional Attach to Qualifying Dynamics, Sales and Customer Service Enterprise)
* Dynamics 365 for Team Members
* Microsoft Relationship Sales (MRS)
{#integrating-with-microsoft365__ul_ftf_w2l_hrb}

For more information about the Microsoft 365 service, see [Microsoft 365 frequently asked questions](https://www.microsoft.com/en-in/microsoft-365/microsoft-365-for-home-and-school-faq).  
Important:  
Minimize security risks and protect information by granting access only to the necessary user or API permissions.{#integrating-with-microsoft365__table_box__entry__3}

| Process | Required user role in the Microsoft Dynamics 365 and Power Apps application | Authentication scopes |
|-|-|-|
| Download subscriptions | Global Reader | * LicenseAssignment.Read.All * User.Read.All {#integrating-with-microsoft365__ul_kcj_bgq_pbc} |
| Pull user activity | Dynamics 365 administrator | user_impersonation |
[Table 1. Minimal user permissions]

{#integrating-with-microsoft365__box-title}

## Set up Microsoft Azure Active Directory {#ariaid-title2}

Set up Microsoft Azure Active Directory (AD).

### Before you begin

Role required: Global administrator

### Procedure

1. Log in to the Microsoft Azure portal using an admin account and navigate to Azure Active Directory.
2. Navigate to the App registrations section and select App registration under + Add.
3. On the Register an application form, fill in the fields.  
   {#setup-ms-azure-ad__table_oqq_3cy_y2c__entry__2}

   | Field | Description |
   |-|-|
   | Name | Name of the application that you want to register. |
   | Supported account types | The account with the required organizational directory. |
   | Redirect URI | URL that accesses Azure. Typically the URL of the ServiceNow instance. Important: You must select Web in the Select a platform drop-down list because Azure AD app must be a web application in App registration for this setup. |
   [Table 2. Register an application form fields]

   {#setup-ms-azure-ad__table_oqq_3cy_y2c}
4. Select Register.
5. Open the application that you registered and navigate to the Overview section.
6. Collect the Application (client) ID and Directory (tenant) ID.
7. Navigate to the Certificates and Secrets section.
8. Create a client secret and collect the client secret key.  
   You need the client secret key while configuring your ServiceNow instance.
9. Under API Permission, select + Add a permission and then select APIs my organization uses.
10. Select Microsoft Graph and add the necessary permissions for both Delegated and Application types as required.  
    * `Organization.Read.All`
    * `User.Read.All`
    * `Offline_access`
    {#setup-ms-azure-ad__ul_ix4_ygm_kqb}
11. Select Dynamics CRM and add the following permission.  
    `user_impersonation`  
    Note:  
    These steps aren't applicable for user_impersonation or Microsoft Dynamics CRM connection because the user_impersonation scope is offered as a Delegated permission in Microsoft Dynamics CRM.
12. Under Grant consent, select Grant admin consent.
13. In the Authentication section, under the Redirect URI, enter the redirect URI of the ServiceNow instance.

## Set up Microsoft Dynamics 365 and Power Apps {#ariaid-title3}

Set the system-level settings for Microsoft Dynamics 365 and Power Apps.

### Before you begin

Role required: admin

### Procedure

1. Go to <https://admin.powerplatform.microsoft.com/>.
2. Under Environments, select the environment for which you want to pull the dynamics activities.
3. From the top ribbon, select Settings.
4. Select Audit and logs.
5. Select the following check boxes.  
   * Start Auditing
   * Log access
   * Read logs
   {#setup-ms-dynamics-365__ul_nl2_35c_lqb}
6. Select Additional Audit Settings.
7. From the Settings list, select Auditing.
8. Select Global Audit Settings.
9. Select the following check boxes.  
   * Start Auditing
   * Audit user access
   * Start Read Audit
   * Common Entities
   * Sales Entities
   * Customer Service Entities
   {#setup-ms-dynamics-365__ul_zpc_55c_lqb}
10. Select OK.

## Set up ServiceNow instance for Microsoft Dynamics 365 and Power Apps {#ariaid-title4}

Set up ServiceNow instance for Microsoft Dynamics 365 and Power Apps to track your software subscriptions and to reclaim unused licenses.

### Before you begin

Role required: sam_integrator  
Important:  
You must select the Microsoft Dynamics 365 Spoke check box for this integration while installing optional features on the [Application Manager](https://www.servicenow.com/docs/access?context=application-manager&version=zurich&pubname=zurich-platform-administration&ft:locale=en-US) page. For more information about choosing the required SaaS applications, see [Request SaaS License Management](https://www.servicenow.com/docs/2VPNsKSGv4R503EL5y0Uew "Request the Software Asset Management - SaaS License Management plugin (sn_sam_saas_int) so that you can create and manage integrations with your SaaS and Single Sign-on (SSO) applications. You can use these integrations to track license usage and to reclaim unused licenses.").

### About this task

If you're using Software Asset Workspace, the option to create the Microsoft Dynamics 365 and Power Apps integration profile in Core UI is inactive.

### Procedure

1. Navigate to the integration profile.

   | Interface | Action |
   | Core UI | 1. Navigate to AllSoftware AssetSaaS LicenseDirect Integration Profiles. 2. Select New. 3. Select Microsoft Dynamics 365 and Power Apps Integration Profile. {#setup-servicenow-instance-for-ms365__ol_ijd_bjk_qtb} |
   | Software Asset Workspace | 1. Navigate to License operationsUser SubscriptionsDirect integration profiles. 2. Select New. 3. Select Microsoft Dynamics 365 and Power Apps from the drop-down list. 4. Select Continue. {#setup-servicenow-instance-for-ms365__ol_wjd_bjk_qtb} |
   |-|-|

   {#setup-servicenow-instance-for-ms365__choicetable_o3p_z3k_qtb}
2. In the Display name field, enter a name of your choice.
3. Under the Calculate Activity Subflow tab in the Analyze user activity from field, select the date since when you want to pull the activity.
4. Select Save.  
   A draft integration profile is created. In the Download Subscription Subflow tab, the Connection \& Credential field appears and is automatically set to sn_ms_365_spoke.Microsoft_365_Graph. In the Calculate Activity Subflow tab, the Connection \& Credential field appears and is automatically set to sn_ms_365_spoke.Microsoft_365_Dynamics.
5. Under the Download Subscription Subflow tab, beside the Connection \& Credential field, select the preview icon ![]() and then select Open Record in the record preview.
6. On the Connection \& Credential Aliases form, select the Create New Connection \& Credential related link.
7. In the Create Connection and Credential dialog box, enter the values you received from [Set up Microsoft Azure Active Directory](https://www.servicenow.com/docs/q9cvMeGmNsl3rp7J6zQj3Q#setup-ms-azure-ad "Set up Microsoft Azure Active Directory (AD).").
   1. In the Tenant ID field, enter your Tenant ID.
   2. In the OAuth Client ID field, enter the OAuth Client ID.
   3. In the OAuth Client Secret field, enter the OAuth Client Secret key.
   {#setup-servicenow-instance-for-ms365__substeps_nxc_qkd_lqb}
8. Select Create and Get OAuth Token.  
   Important:  
   This step must be executed by a user with the Global reader role in the Microsoft admin center.
9. If you're prompted to log in to your Microsoft 365 account, enter your Microsoft 365 credentials and log in to your Microsoft 365 account.
10. Under the Calculate Activity Subflow tab, beside the Connection \& Credential field, select the Preview icon ![]().
11. Select Create New connection and credential alias.
12. In the Create Connection and Credential window, perform the following.
    1. In the Connection URL field, enter the connection URL.  
       To fetch Connection URL, log in to the Microsoft Admin portal and navigate to Admin CentersAll admin centersSelect Dynamics 365 appsEnvironments. Select the environment you want to integrate with. The environment URL is the Connection URL.
    2. Select the permission type to ensure your application accesses data correctly and securely.  
       The permission type can be Application Permissions or Delegated Permissions depending on the application's data access requirements. For more information on permission types, see [Software Asset Management publisher pack for Microsoft](https://www.servicenow.com/docs/yrixEIPbbZ2uFE0QQs8IvQ "The Software Asset Management publisher pack for Microsoft helps you track your license compliance position using Microsoft licensing metrics.").
    3. In the OAuth Client ID field, enter the OAuth Client ID.
    4. In the OAuth Client Secret field, enter the OAuth Client Secret key.
    {#setup-servicenow-instance-for-ms365__substeps_pzy_4md_lqb}
13. Select Create and Get OAuth Token.  
    Important:  
    This step must be executed by a user with the Dynamics 365 administrator role in the Microsoft admin center.
14. Return to the integration profile.
15. On the integration profile form, select Validate Connection to verify the connection and credential details of this integration.  
    Validating the connection verifies the Download Subscriptions and Calculate Activity APIs, but not the Reclaim Subscriptions APIs.
16. After the connection is verified, select Publish.
17. In the Publish Confirmation dialog box, select OK.  
    Note:  
    If you clear the Download Activity check box after the integration profile is published, you must revalidate the connections and then republish the integration profile because the following events occur:
    * The Status field on the integration profile form changes to Draft.
    * The Validate connection button shows up on the form.
    * The current SAM - Refresh \<displayname\> Activity job gets deleted.
    {#setup-servicenow-instance-for-ms365__ul_adf_2v3_ddc}

### What to do next

After the integration connects, your ServiceNow instance automatically creates software models, reclamation rules, and software subscriptions that are refreshed daily.  
After creating an integration profile, view information about the profile in the Software Asset Workspace by navigating to License operationsUser subscriptionDirect integration profiles. You can select an integration profile to view the following related lists. If the following related lists aren't visible for an integration profile in the default view, you can select the custom integration view from the Details tab:

* Software Models
* Unrecognized Subscription Identifiers
* Scheduled Jobs
* Scheduled Job Results
* Software Subscriptions
* Subscription Identifier Exclusion Rule
* Subscription User Exclusion Rule
{#setup-servicenow-instance-for-ms365__ul_gxp_qfk_rfc}

After creating an integration profile, you can define subscription exclusion rules to keep certain subscriptions from license cost calculations. For more information, see [Subscription exclusions for SaaS and SSO applications](https://www.servicenow.com/docs/bVJrkophBDLo8JMEiGX_Bw#subscription-exclusions "Define subscription exclusions for your SaaS and SSO applications to optimize your licensing costs by keeping the excluded subscriptions out of license cost calculations.").

If you want to set up multiple integration profiles with unique connections, create child aliases to manage different configurations and settings for each integration profile. For more information, see [Create a child alias to set up multiple integration profiles](https://www.servicenow.com/docs/B3d2wfmwRbcdy~H9gCDy3A "Create a child alias to set up multiple integration profiles with unique connections and manage different configurations for each integration profile.").

Review all automatically generated reclamation rules to reclaim user subscriptions. For more information, see [Review a software reclamation rule](https://www.servicenow.com/docs/hXAjfp3sn3x4hFFvqm~3Iw "Use reclamation rules to cancel user subscriptions that have limited to no activity.").  
Create software entitlements for the automatically generated software models to track used software against owned software.

* For more information on creating software entitlements in the Software Asset Management Core UI, see [Create entitlements in Software Asset Management classic](https://www.servicenow.com/docs/fSB_J0XtiCVH9Yb3z0nl5Q "Create entitlements in the Software Asset Management application classic to record your license details and allocate purchased software rights to users or devices.").
* For more information on creating software entitlements in the Software Asset Workspace, see [Create entitlements in workspace](https://www.servicenow.com/docs/O~JVsyQdaW99Fe~XMND4nA "Create entitlements in the Software Asset Workspace to enter your license details and allocate purchased software rights to users or devices.").
* For more information on creating software entitlements using the Software Asset Management Playbook, see [Create entitlements using the guided walk-through](https://www.servicenow.com/docs/wJ~MxrbMj7k2PMSUNbBcaQ "Use the guided walk-through playbook for a step-by-step process of creating entitlements.").
{#setup-servicenow-instance-for-ms365__ul_cbz_vhr_sqb}  
Reconciliation also runs on your subscriptions as a scheduled job or on-demand. You can view your reconciliation results in the [License Workbench](https://www.servicenow.com/docs/SRttnWmeSWHbtUcWT_EVIg "Review reconciliation results in a simplified workbench view.") (Software Asset Management classic application) or the [License usage view](https://www.servicenow.com/docs/4DsgjV93XfS5XdUvFJKXAw "Use the license usage view as a single plane to understand the license position of all software products, remediate non-compliance, view reconciliation results, view, or add removal candidates, and view Software Asset Management related reports.") (Software Asset Workspace). Use these results to determine your license compliance position and to remediate any non-compliance.

* For more information on running reconciliation in the Software Asset Management classic application, see [Run software reconciliation in Software Asset Management classic](https://www.servicenow.com/docs/4Wmi3GcnvHNlu_55smQiDg "Reconciliation is run as a scheduled job (default is weekly), but you can also run reconciliation manually to reconcile software products in your environment on demand.").
* For more information on running reconciliation in the Software Asset Workspace, see [Run software reconciliation in the workspace](https://www.servicenow.com/docs/zHSY1HGusrWVWkmoXuMwWA "Reconciliation is run as a scheduled job (default is weekly), but you can also run reconciliation manually to reconcile software products in the Software Asset Workspace environment on-demand.").
{#setup-servicenow-instance-for-ms365__ul_qgf_zhr_sqb}

## Optimizing Microsoft Dynamics 365 subscriptions {#ariaid-title5}

Evaluating the software usage activity of Microsoft Dynamics 365 subscriptions helps you monitor license usage, optimize license allocation, and potentially
reduce costs for the assigned licenses. Software usage activity refers to how software products are being used.

Based on the software usage activity and the incurred cost, Software Asset Management generates optimization recommendations for your software subscriptions that include the following:

* Low usage subscriptions

  Software Asset Management recommends reclaiming the low usage subscriptions. For example, if the last activity date is 60 days
  prior to the current date, the subscription is considered
  a low usage subscription.
* Consolidated subscriptions

  If a
  user has
  multiple base licenses for different Microsoft Dynamics 365 applications, Software Asset Management recommends consolidating the subscriptions to optimize licensing. This approach involves purchasing one base license and obtaining the rest as
  attached licenses, ensuring compliance with Microsoft's licensing terms while being more cost-effective.

  For example, if
  Dynamics 365 Commerce, Dynamics 365 Finance, and Dynamics 365 Human Resources base license subscriptions are purchased for a user, Software Asset Management recommends using Dynamics 365 Commerce as base license and Dynamics 365 Finance and Dynamics 365 Human Resources as
  attached licenses to the base license. For more information, you can download the Dynamics 365 Licensing Guide
  from the
  [Dynamics 365 pricing overview page](https://www.microsoft.com/en-us/dynamics-365/pricing-overview).

{#evaluate-usage-m365-dynamics__ul_bpz_njk_p1c}

After completing the [Integrating with Microsoft Dynamics 365 and Power Apps](https://www.servicenow.com/docs/q9cvMeGmNsl3rp7J6zQj3Q#integrating-with-microsoft365 "Integrating your ServiceNow instance with the Microsoft Dynamics 365 and Power Apps service enables you to track your software subscriptions and to reclaim unused licenses.") integration, you can view the usage activity information in the Software Subscription \[samp_sw_subscription\] table.
**Related reference**   

* [Reclamation rules for SaaS and SSO applications](https://www.servicenow.com/docs/K1Kh4IT6equR2LmLNu5y_g "Reclaim unused SaaS and Single sign-on (SSO) subscriptions to reduce your total software costs.")

*[\>]: and then