These are the Best Practice to Customize Your Microsoft Dynamics 365 Microsoft's SaaS solution, Microsoft Dynamics 365 unifies the CRM and ERP capabilities that business need for efficient operations and productivity enhancements. The single business platforms combine latest and trending features such as business intelligence, insights, and data analytics, so businesses can use a single powerful platform for all their processes.
When it comes to customization, Microsoft Dynamics 365 can be highly tailored to reflect your business' goals and objectives. The flexible and scalable CRM and ERP solution can be built into a completely transformed Dynamics experience. As per your business goals and needs, Dynamics CRM developers can tweak business implementations of the platform. As per unique business situations and needs, developers can alter any CRM ad ERP solution. For example, if you want to focus on customer experiences and want to drive better customer engagement, there is a different way of customizing the Microsoft Dynamics. This implementation will help you focus on the customers and offer value to them consistently. Here are some of the best practices for customizing your experience with Microsoft Dynamics CRM solution: 
Using custom attributes and entities It is advisable to focus on saving the server space. Thus, Microsoft Dynamics 365 developers are advised to customize the attributes and not complete entities when they need a unique implementation. Adding custom attributes can save a lot of server space in Dynamics 365. Also, the existing entities can be renamed to make more sense according to the implementation, when need be. This way, meaningful names can be assigned to the entities and a lot of server space can be reserved.
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Customizing an entity When there is a need for a new custom entity, an existing system entity such as the opportunity entity should be customized rather than replacing it with a new custom entity. This way, the built-in features present in the system entities can be leveraged. Such as, the opportunity and case entities in Dynamics CRM have lookup fields that can associate customers with these entities. Moreover, the display name of the system entity can be
changed so that it appears more meaningful in the context of your approach. 
Customizing the default solution It is prohibitive to make changes to the default solution. Instead, it is advised to create a new solution and add publisher with a custom prefix. This way, it becomes easier to identify migrate and customizations them between CRM systems.
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Leave the Production Environment The minimum number of CRM environments any company should have is two. One for the development and the other for the production. Whenever a new customization is to be started, it must be done in the development environment. In the development environment, the code can be developed, tested, and processed before it is deployed to the production. Microsoft Dynamics CRM Consultants also suggest creating two more environments in between these two- Component Integration Test and User Acceptance Testing. Adding these environments in between makes sure that the developed code is tested thoroughly on all parameters so that the end product has the least number of loopholes or none at all, ideally.
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Track the History Maintaining a historical trail of all code additions makes backtracking easier. Version controlling allows developers to re-track their code when they don't work. Also, a lot many other features can be tracked such as bug tracking build automation, data warehouse, etc.
With these best practices, your customizations will never lose sight of your goals. Also, you will ensure a smooth development cycle followed by seamless deployment.