SaaS App Needs SSO? Create Enterprise Application

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A company starts using a SaaS app.

Users should not keep a separate password for it.

The Microsoft Entra pattern is:

Create enterprise application -> copy Entra IdP values -> configure the SaaS app -> copy SaaS SP values back to Entra -> assign users -> test sign-in

This trip uses the Microsoft Entra SAML Toolkit as a demo SaaS-style application.

You can use the same flow for a real gallery SaaS app such as Salesforce, ServiceNow, GitHub Enterprise, or many others.

The important SAML idea is that configuration happens on both sides.

Microsoft Entra is the identity provider.

The SaaS app is the service provider.

Entra must know the app endpoints, and the app must know the Entra sign-in endpoints and certificate.

Enterprise Application vs App Registration

This distinction matters.

An app registration is usually for an application you are building.

An enterprise application is the app instance in your tenant.

For SaaS SSO, you normally work with:

Enterprise applications

because you are connecting your tenant to an app users will access.

Open Enterprise Applications

Go to:

Entra ID > Enterprise apps

Select:

New application

Microsoft Entra Enterprise applications page showing New application

Search for:

Microsoft Entra SAML Toolkit

Select the gallery application.

This app is useful for learning the SAML SSO configuration flow without needing a real external SaaS tenant.

Microsoft Entra application gallery showing Microsoft Entra SAML Toolkit

Create the Enterprise Application

Name the application clearly.

Example:

CloudTrips SAML Toolkit

Create the application.

After creation, the app appears as an enterprise application in your tenant.

Create enterprise application page showing CloudTrips SAML Toolkit

Open Single Sign-On

In the enterprise application, open:

Single sign-on

Choose:

SAML

SAML is still a very common SSO protocol for SaaS applications.

Enterprise application single sign-on page showing SAML selected

Copy Entra Identity Provider Values

On the SAML setup page, find the Entra identity provider values:

Login URL
Microsoft Entra Identifier
Logout URL
Certificate

Download or copy the raw certificate value if the SaaS app asks for it.

These values tell the SaaS app how to trust your Entra tenant.

You need them before the SAML Toolkit can generate its own service provider values.

SAML setup values showing login URL, Entra identifier, logout URL, and certificate download

Register the Matching Toolkit User

Open the SAML Toolkit website.

Create a local user in the toolkit with the same email address as the Entra user you will test with.

Example:

DmytroKlymenko@cloudtrips.onmicrosoft.com

This does not mean the user keeps using a separate password after SSO works.

It means the demo SaaS app has a local user record that can be matched to the SAML NameID Entra sends.

Many real SaaS apps do this with SCIM provisioning, just-in-time provisioning, or pre-created users.

SAML Toolkit registration page showing a user account matching the Entra user email

Configure SAML in the Toolkit App

Log in to the SAML Toolkit with the local user.

Open the toolkit SAML configuration page.

Paste the Entra values into the toolkit:

Azure AD Login URL
Azure AD Identifier
Logout URL
Raw certificate

Save the toolkit configuration.

The toolkit now knows that Entra is the identity provider.

After saving, the toolkit shows its service provider values.

SAML Toolkit configuration page showing Entra login URL, identifier, logout URL, and raw certificate fields

Copy Toolkit Service Provider Values

From the toolkit configuration page, copy the values generated by the toolkit:

Entity ID
Assertion Consumer Service URL
SP initiated SSO URL

These are the values Entra must use in Basic SAML Configuration.

In the test that worked, the reply URL included a toolkit-specific number, for example:

https://samltoolkit.azurewebsites.net/SAML/Consume/21951

If you recreate the toolkit configuration, that number can change.

Configure Basic SAML Settings in Entra

Return to:

Enterprise application > Single sign-on > Basic SAML Configuration

Use the toolkit service provider values:

Identifier = toolkit Entity ID
Reply URL = toolkit Assertion Consumer Service URL
Sign on URL = toolkit SP initiated SSO URL

The values must match what the toolkit generated.

Basic SAML Configuration showing toolkit Entity ID, ACS URL, and SP initiated SSO URL

Review Attributes and Claims

Open:

Attributes & Claims

This controls which user values Entra sends to the SaaS app.

Common claims include:

Name ID
user.userprincipalname
user.mail
user.displayname
user.givenname
user.surname

Only send claims the SaaS app needs.

For this demo, the important value is the NameID.

It must match the toolkit user account you created earlier.

SAML Attributes and Claims page showing Name ID and user claims

Assign Users or Groups

Open:

Users and groups

Add the test user or group.

Example:

GRP-CloudTrips-SaaS-Users

Only assigned users can access the app when assignment is required.

Enterprise application users and groups page showing assigned user or group

Test Single Sign-On

Test in a new InPrivate browser window.

You can test from:

https://myapps.microsoft.com

or from the toolkit:

SP initiated SSO URL

Sign in as the assigned Entra user.

The proof is that Entra issues a SAML response and the toolkit accepts it as the matching local user.

SAML Toolkit successful SSO result showing the signed-in Entra user or SAML response details

Enterprise Note

Enterprise application SSO is not only an authentication setting.

It is also an access-control boundary.

Recommended checklist:

  • assign users or groups intentionally
  • keep app assignment required when appropriate
  • send only required SAML claims
  • document who owns the SaaS app configuration
  • protect the app with Conditional Access if it contains sensitive data
  • review audit logs when SSO settings change
  • remove unused enterprise applications