In this blog, we’re diving into one of the most essential starting points for any Dynamics 365 development journey — creating a new model. This step is foundational, as everything you customize or build in D365 F&O will live inside a model. So, let’s break it down, step by step.
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👉 Step 1: Open the Model Creation Wizard
Navigate to: Dynamics 365 > Model Management > Create model
This is where the model creation process begins.

🧩 Step 2: Define Model Details
Here’s what you’ll fill in:
- Model Name: We’ll name ours
D365U (short for Dynamics 365 Universe). You can choose any unique name that best represents your customization.
- Model Publisher: Enter your name or your organization’s name. This helps identify the model's creator.
- Version: Usually set to
1.0.0.0 by default. You can update this manually later — it doesn't auto-increment.
- Layer: Select
USR (user layer). This is the standard layer for most custom models.
- Description (Optional but recommended): Add a short note on what this model is for — a good habit for clarity and documentation.
📦 Step 3: Choose the Package Type
You’ll now choose how the model is packaged:
✅ Create a new package: This is the most common and preferred option for new models.
🚫 Select an existing package: Avoid this unless you're working on very specific customizations.
Note: Overlayering has been restricted since version 8.1, so creating a new package is the standard approach.

📚 Step 4: Define Dependencies (Optional)
If your model needs features or components from other models — like ApplicationSuite or ApplicationFoundation — you can define them here.
Don't worry if you're unsure at this stage — you can always update dependencies later by right-clicking the model in Visual Studio and selecting Update model parameters.

✅ Final Step: Review & Finish
You’re almost done!
On the summary screen, carefully review all your entries. Once confirmed, click Finish to create your model.
Before wrapping up, you’ll also see two helpful options:
- ✔️ Create a new project: Tick this if you want the system to auto-create a project inside your model. Super helpful if you're ready to start coding right away.
- ✔️ Make this my default model for new projects: Select this to save time on future projects, automatically linking them to the D365U model.

🎉 Congratulations!
You’ve now successfully created your first custom model in Dynamics 365 F&O!
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