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Microsoft Dynamics 365 | Integration, Dataverse...
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“User Not Found in F&O” Error with Power Pages Virtual Entities and Service Principal Configuration

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We have a Power Pages Portal that surfaces data from Microsoft Dynamics 365 Finance & Operations via virtual entities in Dataverse. The portal is prompting the following error:

"User portal:{00000000-0000-0000-0000-000000000000} was not found in Finance and Operations. Please ensure this user exists."

Despite configuring a service principal (Client ID and Secret) in the F&O virtual data source record, the portal still seems to pass the portal user's identity to F&O, causing the “User not found” error. I suspect that something is overriding the service principal authentication and reverting to a per-user delegation mode.

Question:

  1. How do we fully configure Dataverse to use a single service principal for all calls to F&O virtual entities (so that F&O doesn't try to match each portal user)?
  2. Could you provide direct references or official Microsoft documentation that explains how to disable per-user impersonation and ensure the service principal authentication is enforced?

Goal:

  • Stop the portal from sending the portal user's identity to F&O.
  • Rely solely on the service principal account we’ve configured, so the “user not found” error no longer occurs.
  • Confirm the specific steps or environment variables in Dataverse and F&O that must be set, plus any relevant hidden fields or flags, to ensure service principal authentication is used.
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