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Little background about integration requirement.
What is the best approach for file based integration in this scenario.
Is the 3rd party system able to communicate using services? Using a cloud solution and files processing is a bit cumbersome. The cloud cannot access your local or network folders. To be able to use integrations, data entities are required; unless you want to write a custom class.
Please read the next informational document: docs.microsoft.com/.../recurring-integrations
You can use one of the two solutions for file integrations:
Yes, you should use data entities for data import.
You'll also need scheduling capabilities (to run it every day), but whether it should be a batch job or an external process (as in Recurrence Integration Scheduler) is an implementation detail.
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