Switching from a Service Account to an Application User in Work 365

Applies to: Dynamics 365 Online Environments
Audience: System Administrators

Overview

Switching from a traditional service account to an Application User in Work 365 enhances security, supports scalability, and aligns with Microsoft’s integration best practices. This guide walks you through configuring an Application User using the Power Platform Admin Center.

Pre-requisites

✔️ System Administrator privileges in Dynamics 365
✔️ Access to Power Platform Admin Center
✔️ Work 365 already installed in the target environment

Estimated Time: ⏱️ ~5 minutes

Procedure

1. Access the Environment

✅ Navigate to the Power Platform Admin Center
✅ Click Environments in the left-hand menu
✅ Select the environment where Work 365 is installed
✅ Go to Settings > Users + Permissions > Application Users

2. Add the Work 365 Application User

✅ Click + New App User
✅ In the right-hand panel, click + Add an App
✅ Enter the Application ID based on your region:

✅ Click Search, select the Work 365 application, and click Add

3. Assign Security Roles

✅ Locate the new App User
✅ Click the ellipsis (⋯) > Edit Security Roles
✅ Assign the following roles:

• ✔️ Work 365 Service

• ✔️ Work 365 Portal Service
  ✅ Click Save

4. Update Work 365 to Use the Application User

✅ In Dynamics 365, navigate to Work 365 > Admin Hub
✅ Click Change Service User
✅ In the popup, select Application User and click Proceed
✅ A confirmation message will appear upon success

5. Clear the Work 365 Cache

✅ In the Admin Hub, select Clear Cache from the same dropdown
✅ Once cleared, hover over the user icon in Work 365
➡️ The Application ID of the App User should now appear

Important Considerations

✔️ Ensure you use the correct Application ID for your region
✔️ Assigning both security roles is mandatory—failure to do so may cause Work 365 features to break
❌ If the setup fails, check Dynamics 365 system logs or contact Work 365 Support

Additional Resources

Work 365 Documentation Portal
Power Platform Admin Center
Manage Application Users in Power Platform