Client credentials refers to a flow in OAuth where there is no direct user authentication taking place. Instead, credentials are created for just the app itself. All tasks taken by the app are done without a default user context. This makes the authentication flow a bit different from standard.
Client OAuth Flow
All permissions related to the client oauth flow require admin consent. This means the app embedded with the CData ADO.NET Provider for Dynamics 365 Sales cannot be used in the client oauth flow. You must create your own OAuth app in order to use client credentials. See Creating a Custom OAuth App for more details.
In your App Registration in portal.azure.com, navigate to API Permissions and select the Microsoft Graph permissions. There are two distinct sets of permissions - Delegated and Application permissions. The permissions used during client credential authentication are under Application Permissions. Select the applicable permissions you require for your integration.
In addition to setting the standard OAuth client id and secret, to use client credentials you must also set the following connection properties:
- OAuthGrantType: Set this to CLIENT.
- AzureTenant: Set this to the tenant you wish to connect to.
When you authenticate using client credentials, there is no Web flow as discussed under Using OAuth Authentication. Authentication with client credentials will take place automatically like any other connection, except there will be no window opened prompting the user. Because there is no user context, there is no need for a browser popup. Connections will take place and be handled internally.