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When deactivating a record in CRM you need to specify a state code and a status code. Here is the code to deativate a custom entity. For system entities there are specific objects for each entity, i.e. SetStateOpportunityRequest. SetStateDynamicEntityRequest deactivate = new SetStateDynamicEntityRequest...
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The SDK includes functionality to merge records. When executing the merge it will deactivate the source record. It will move any child records to the target record and it will overwrite any fields you specify on the actual target record. There are build-in merge classes for accounts, contacts and leads...