New environment creation in PPAC

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Dear team,

During creation new environment in PPAC. I have few queries...

Type- Is we need to select always "SandBox"?

Add a Dataverse data store - Yes/No: What is the use of this? What it does?

enable Demo data for finance and operation -- If we select Yes, than is it enabled contoso data ? if yes, then is it connected to our local SQL DB?

If its No, then what will happen?

please give me the thoughts.

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Dynamics 365 Finance

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CU10121822-0 306 on at

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Once available, kindly reply on this pls. thanks!

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Anton Venter 20,656 Super User 2026 Season 1 on at

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Hi,

Type- Is we need to select always "SandBox"? Answer: no, it depends what you want to do.

Add a Dataverse data store - Yes/No: What is the use of this? What it does? Answer: basically your backend database in the Azure cloud.

Add a Microsoft Dataverse database

https://learn.microsoft.com/en-us/power-platform/admin/create-database

Enable Demo data for finance and operation -- If we select Yes, than is it enabled contoso data ? if yes, then is it connected to our local SQL DB?
If its No, then what will happen? Answer: Yes. No.

Create and manage environments in the Power Platform admin center

https://learn.microsoft.com/en-us/power-platform/admin/create-environment

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André Arnaud de Cal... 303,716 Super User 2026 Season 1 on at

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Hi,

Can you tell us what type of environment you want to deploy? As the question is placed in the Dynamics 365 Finance forum, it could be about a Dynamics 365 production environment, sandbox, 30-day trial, or development environment.

Only for a sandbox or development environment, you need to select sandbox as environment type.

For Dynamics 365 F&O, the environment should be managed (recommendation), which will also enable the Dataverse Data Store. This is required for Dynamics 365 F&O environments as options such as Dual Write, Virtual entities, Copilot features are depending on Dataverse database storage.

Demo data indeed will provide the Contoso dataset. There is no local SQL DB used for PPAC deployed environments. If the demo data is not enabled, the database is empty. Some tables like countries, currencies, address formats are provided out of the box.

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Sohaib Cheema 49,677 Super User 2026 Season 1 on at

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Hi,

Type: choose based on purpose. choosing Sandbox is not a must. You can choose whatever suits your situation.

Dataverse: Yes/No: For D365 FO projects it is recommended to choose yes, as you would need it at some point for integration scenarios between the apps

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Sagar121 1,160 Super User 2026 Season 1 on at

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It is mandatory to choose DataStore option. If you don't select this you will not get options to deploy F&O environment and it will be normal Power Platform environment. Yes, it will enable Contoso data for you.

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