By default in Dynamics products are created in a drafted state. This means products can't be added to sales orders or subscriptions because the status of the product is not active. This also means tenants using the Work 365 Product Service to automatically create products will do so in a drafted state unless this setting is updated.
To update Dynamics so that products are created in an Active state, follow the below steps.
- Navigate to the Sales App
- Change Application Area to App Settings
- Modify the Behavior under Product Catalog -> Product Catalog Settings