Keep an overview of your Dataverse data models with Entity Relationship Diagrams (ERDs): Whether planning, optimization or presentation – ERDs create clarity and promote collaboration. We show you three methods for creating ERDs.
In our data-driven world, it is important to quickly understand and clearly communicate complex data models. Entity relationship diagrams (ERDs) provide invaluable services in this regard. They visualize the structure of a database and thus make the relationships between the data visible.
What are Entity Relationship Diagrams (ERDs)?
Entity-relationship diagrams provide a graphical overview of the structure of a data model. They show how tables (entities) are linked to each other, which properties (attributes) they have and what their relationships to each other look like.
- Entities: Tables, e.g. “Customer”, “Product”.
- Attributes: Properties of the entities, e.g. “Name”, “Price” or “Creation date”.
- Relationships: Relationships between entities, e.g. “Customers buy products” (1:N) or “Products belong to categories” (N:N).
An ERD makes it possible to capture the organization and interaction of data at a glance. This is particularly helpful when planning new systems, optimizing existing structures or coordinating between business and IT teams. ERDs are a central component of successful data modeling, especially in projects with Microsoft Dataverse.
Why are ERDs important?
Creating clarity: Complex data models become easier to understand through visualization.
Promoting collaboration: ERDs are a common reference tool for developers, business users and customers.
Facilitate planning: A visual overview enables errors to be recognized at an early stage and opportunities for improvement to be identified.
How do you create ERDs? A comparison of three methods
1. manual creation in Visio

Microsoft Visio is a proven tool for the manual creation of ERDs. Visio offers maximum flexibility, especially for new data models.
This is how it works:
- Open a new diagram in Visio.
- Add tables as shapes and name them.
- Connect the tables with lines to display relationships (e.g. 1:N).
- Optimize the layout to increase readability.
Advantages:
- Perfect for creating models without existing data
- Maximum creative freedom
- Ideal format for passing on to customers
Disadvantages:
- Time consuming
- Susceptibility to errors with manual input
2. creation with Power BI

Power BI is primarily known for data analysis, but also enables the visualization of table relationships.
This is how it works:
- Import your Dataverse data into Power BI.
- Switch to the “Relationships” area.
- Visualize and edit the relationships.
Advantages:
- Direct integration into the Microsoft ecosystem
- Possibility to combine diagrams and reports
Disadvantages:
- Requires an existing data model
- No direct export function in Visio.
3. creation with the XrmToolBox

The XrmToolBox is a specialized tool for Dataverse and Dynamics 365. ERDs can be generated quickly with plugins such as the “Entity Relation Diagram Creator”.
This is how it works:
- Download the XrmToolBox and connect it to Dataverse.
- Select the “Entity Relation Diagram Creator” plugin.
- Generate the ERD and export it to Visio.
Advantages:
- Quick creation for existing models
- Direct export to Visio
Disadvantages:
- Knowledge of the XrmToolBox is required
- Post-processing of the diagram often necessary
Our favorite: ERD creation with Visio
Microsoft Visio combines flexibility and professionalism in a unique way. Every detail, be it the layout, the color scheme or additional notes, can be individually adapted so that the diagrams are optimally tailored to your requirements. In addition, Visio offers a uniform, professional format that not only impresses internally, but also leaves a lasting impression in customer presentations. Thanks to the easy updating and expansion of the files, Visio is also ideal for projects that evolve dynamically.
ERDs as the key to data model transparency
Entity relationship diagrams are indispensable for visualizing and efficiently communicating complex data models in Dataverse. While Power BI and the XrmToolBox offer useful alternatives, Microsoft Visio remains the ideal tool for creating professional ERDs.
With a structured approach and the right tools, you can not only better understand internal data models, but also convince customers and stakeholders of your concepts.
Try it out and transform your data models into meaningful visualizations!