IOT enabling an entity type
Dynamics 365 entities can be associated to IoT entities so that within Dynamics 365 they can participate in IoT-related business processes and analyses. There are two methods of "IoT enabling" a Dynamics 365 entity; you can:
* (D) Programmatically form an association through the standard Dynamics 365 Connection entities capability. You can alternatively accomplish this same association through the administration UI; for more information, see Create connections to view relationships between records.
* (C) Call the IoT - Register Custom Entity action to associate an entity with an existing or new IoT Device.
Reference:
https://docs.microsoft.com/en-us/dynamics365/customer-service/cs-iot-extend-connected-customer-service-solutions