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Forum Post: RE: The Consequences of Having Many Custom Entities in Dynamics 365

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There are no performance issues or limits on the number of entities. In general, I'd lead this based on the ease of data entry. All things being equal, asking users to create records for multiple entities (each with a different form), is not quite as effective as just using one entity, if that makes sense. That said, if you find yourself having to conditionally hide many fields on an entity, this can get over-complex, and it may be better to split this into multiple entities

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