Service principal decouples the flow from the user. So it removes the dependency between the flow and user. If user is inactive or deleted flow will not be affected.
Steps to use service principal in your flows.
First Register app in azure portal
Second click on new connection reference
Third , connect with service prinicipal and provide the details from your azure portal
Click Create
Need to register the app and application user is required for server-to-server authentication
An enterprise can create a web application or service to connect to any Dataverse environments associated with a single Azure Active Directory (Azure AD) tenant.
Navigate to https://portal.azure.com . Open Manage Azure Active Directory
Under the manage tab locate App Registration
Click on App Registration
Click on New Registration
Provide the details such as APP name , who can use this application and redirect uri is optional you can leave it as blank
After you have Clicked Register. Your App would be created. Copy the application (client id) mention as below and save it somewhere will need it to create application user
Go API Permission
Click on Add Permission
Select Dynamics CRM
Click on Grant Admin Consent
Click Yes
Now got Certificate & Secrets
Click New client secret. Provide Description and Expires in
Client secrets will be generated. Copy those values and save it. Will need it in future.
Now you need to Register the Application user in Dynamics CRM
Navigate to Setting -> Security -> Users. Change the view to application user.
Create New Application user
Switch Form to Application user
Enter the application ID of your app created in Azure and click save.
If there goes well all others fields will be populated
Before exiting the user form, choose MANAGE ROLES and assign a security role to this application user so that the application user can access the desired organization data.
At this stage we are done with registering the app in azure AD and creating the application user for same.
Note : In an environment, only one application user for each Azure AD registered application is supported. You will not be able to change the primary email address or username once the application user is created.
Sanket Kumar 