Dynamics 365-Sales Process Overview

Following is a standard process in Dynamics 365. In case your organization follows some additional steps, those can also be incorporated in Dynamics 365 for Sales as well.

  1. The first step in the process is to create a LEAD. A lead can be a potential sale or a potential customer.
  2. Once the lead shows interest in your product or services and asks for more information, it means they are interested. Once they are interested you can qualify that lead and it becomes an OPPORTUNITY. This process is called Lead Qualification. As soon as you do Lead Qualification two things happen:
    1. Whatever information you have captured as an individual in the Lead becomes CONTACT.
    2. Whatever information you have captured as a company in the lead becomes ACCOUNT.

    This is an automatic process and if existing contacts or accounts are available for the lead then the system is going to pick that automatically.

  3. Once you have the opportunity, it means that you have shared the details with the customer, who ask you for more information, so you add products, price, etc. in the Opportunity and created a SALES QUOTE. When you create quotation, you may have to create multiple versions of it because customer might do negotiations with you. All the previous versions are not deleted but saved for history.
  4. Once the customer is interested in product and services and likes the quote, you can then convert the quote to a SALES ORDER. It means it’s a conformation from a customer and the order is created. In the background, the system closes the opportunity with status Won and created an order.
  5. So, once you have received a Purchase order form the customer and you have created the Sales order, you can now go ahead and deliver the product and service you have promised and once you have delivers the products and services, it is time to send them an SALES INVOICE. It means that the work is finished and you are sending an invoice so that the customer can make a payment.

Dynamics 365 – Sales Important Terminology

Want to get started with Dynamics 365 for Sales? Following are basic terminologies that you should be aware of:


  • Accounts is an organization which includes:
    • Customer
    • Vendor
    • Partner
    • Affiliate or Other
  • So, when you are doing business with any company, you capture those company details in the Accounts entity.

NOTE: An Entity is a place where you can store records.


  • Contact is an individual.
  • Contact is also your customer, but an individual person.
  • Contact can be associated maximum with one Account, which is called its Primary Contact.
  • For company, you are doing business with, you will need a person whom you are going to interact with. That becomes your primary contact.
  • Therefore, Contacts and Accounts are your customers, where Accounts are organizations and Contacts are individuals.


  • A Lead is a Prospect and it can be your Potential Customer or Potential Sale. This means that there is a person who has never done a business with you and you have met for the first time and there is a possibility of doing business. On other hand there can be an existing customer who want to work with you on a new Opportunity.
  • Whenever you meet someone, they give you their business card or they share some information about themselves and that becomes your lead.
  • You capture your lead information in Dynamics 365 Sales module.
  • Every sales process starts with a Lead generation or Leads. You interact with them and you start following up with them.


  • Opportunity is a potential sale, which means that the lead is almost ready to buy.
  • You can create an opportunity manually and not necessarily convert a Lead to and Opportunity.
  • Opportunity is attached to an Account or a Contact, because it is essential to know whom are you going to sell. There you identify the customer needs, what are the pain points they have, what exactly is the solution they are looking for and what proposal you have suggested to them.


  • When your Lead becomes ready to buy, that becomes an Opportunity and when the prospect is entrusted in your product & Services they may ask you for a Quote.
  • Quote is a document for Prospect & Customer with all the details, such as the product they want to purchase, the quantity that they are looking at, the price you are offering to them, payment terms you have defined and some other important details.
  • Once the quote is ready, you can send it to the prospect or the customer, based on which they can take a decision.


  • Orders is a confirmation from a customer that they are purchasing your product or services.
  • It can be created from a Quote, which means that you do not have to manually enter it again and all the information from the Quote will be transferred to the Order.
  • Orders can also be created manually, so it is not necessary that you follow the entire process. So in case the customer has already given an order, you can create it directly in Dynamics 365 for Sales.


  • It is a document that you use to bill your customer for using your product and services.
  • It is sent to the Customer once you have fulfilled the order. Sending an invoice ensures that the customer is going to pay you for the product and services that they have used.
  • It can also be created manually so that you do not have to follow the entire process, for example in case you have a repeated customer who uses your product and services regularly.


  • It is a place where you capture all your competitors
  • When you are bidding for any project and if some other company is also bidding for the same project then you should know what they are good or bad at, what are their strengths and weaknesses, what is their product offering, what kind of quality they offer, etc. So you can record all kind of information about your competitors and keep track of them by attaching it in your sales process.

Sales Literature

  • It is a centralized repository for sales related documents such as Brochures, Product guides, Competitor Information, Pricing & Discounts, etc.

Product Catalogue

  • A product catalogue is a collection of products and their pricing information.
  • When you have product and services, you can created it under Product,
  • You can define a Unit Group, which means how do you sell and purchase a particular product, for example PCs can be sold in numbers and for training you can charge your customers on hourly basis.
  • You can define the Price List based on the Segmentation of your Customers. So you can define multiple price lists.
  • You can define Discount Lists, for example if a customer buys from 0-10, he may be eligible for 1 0 % discount, if he buys from 11-20, he may be eligible for 20 % discount, etc.


  • Goals are used to keep track of progress on achieving target revenue that you have planned for a particular period (Quarter, Year, etc.)

Goal Metrics

  • Goal metrics explains how the goal number or figure is measured.
  • It is important to define what the goal metrics is, i.e., is it a Count or an Amount. For Sales, it is going to be Amount and say if you want to see how many calls a salesperson has made in a day then that becomes your Count.
  • Actual revenue is calculated through rollup fields, so you can define those rollup fields for calculations for example, whether it is going to be sum of all opportunities that have status 1 or sum of all the Opportunities which are closed.

Now you can dive deeper into the Dynamics 365 Sales process. Cheers!