Microsoft Finance & Operations 401 Error
Introduction
This article guides users through resolving the "Please verify that the user is valid and set up correctly" error in Microsoft Dynamics 365 Finance & Operations (FNO). This error, often accompanied by a 401 Unauthorized response, occurs when the Microsoft Entra ID application is not correctly set up or associated with a valid user account in FNO. Following the steps below will help ensure proper configuration and restore application access.
Steps to Resolve the Error
Step 1: Login and Search for Microsoft Entra ID Applications
Login to your FNO account using administrator credentials.
In the search bar, type "Microsoft Entra ID applications" and open the option that appears.

Step 2: Add a New Application Entry
Click the New button to add a new record in the Microsoft Entra ID applications list.
Enter the Client ID for your application in the respective field.
Set the User ID field to ADMIN to associate the application with the administrator account.

Step 3: Save and Validate Configuration
After entering the Client ID and User ID, click Save to apply the changes.
Perform a test login or integration to verify if the error persists.
Step 4: Troubleshoot Further If Needed
Confirm the Client ID exactly matches the one registered in your Azure portal.
Ensure the ADMIN user account in FNO is active and has the required permissions.
Check for any conditional access policies or additional security settings that might block authentication.
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