Hi Team,

This is the idea from Mick Munro - The University of Newcastle

Scenario

We use SharePoint document management integration in Dynamics 365 and is currently facing a scalability concern related to the Default Document Location behavior for specific entities.

The existing Default Document Location has accumulated 50,000+ unique permissions, and our goal is to reset this boundary to reduce the risk of hitting the SharePoint unique permissions threshold.

We would like the ability to change or reassign the Default Document Location for newly created records only, without affecting existing records that are already associated with the original document location.

During investigation, we confirmed that there is currently no straightforward supported way in product behavior to directly change the Default Document Location once configured.

A workaround was implemented to associate newly created records with a new SharePoint document location. However, newly created Contact records still continue to default to the original document location, so the workaround does not fully meet our business requirement.

We also confirmed that this change may be possible through PowerShell, but this approach is operationally complex and difficult to manage in practice.

Expected behavior

We expect Dynamics 365 to support a configurable or supported method to:

• Reassign the Default Document Location for newly created records only
• Preserve the existing document location for historical records without disruption
• Help organizations reset or avoid continued growth of unique permissions on the current SharePoint document location
• Provide a supported and operationally manageable design for this scenario without requiring complex scripting or unsupported administrative workarounds

Actual result

Currently:

• There is no supported product capability to directly change the configured Default Document Location in a way that applies only to newly created records
• Newly created records for some entities, such as Contact, continue to resolve to the original document location even after workaround attempts
• The available PowerShell-based approach is not practical for the customer due to administrative complexity and operational overhead

As a result, we are unable to cleanly redirect new records to a fresh SharePoint document location while keeping existing records unchanged.

Ask

Could the Product Group consider a future enhancement so that:

• We can optionally reassign the Default Document Location for new records only, without impacting existing records
• Organizations can adopt a supported design pattern to reset or control SharePoint unique permission growth over time
• Administrators have a clearer and more manageable way to transition entity document storage to a new SharePoint location when scale or permission-boundary concerns arise

This enhancement would help customers better manage long-term SharePoint document storage scalability, reduce operational complexity, and avoid reliance on difficult manual or scripted workarounds.

Thank you for your help.