Change Database Collation

Why?

The only supported Collation for Dynamics 365 finance and operation is SQL_Latin1_General_CP1_CI_AS

If you are upgrading your old Database from Dynamics AX 2012 and your database is of another collation, this is a problem.

What to do:

You cannot reinstall the SQL Server to change the Collation, because it will be time consuming and hectic work.

There are multiple solutions, but the simplest one that I have found is as follows.

1)      Export your old Database from AX2012 in the form of bacpac

2)      Open your. bacpc file with any compression software e.g., WinRar

3)      Copy the Model.XML File into a new location

4)      Modify the Model.XML file, and update the Collation

5)      Once the Model File is changed, import the .bacpac file, using command. But here in this step make sure to pass the parameter for overwriting the model file during import. The name of parameter is /ModelFilePath:LocationOfYourUpdatedModelFile

For more details

https://techcommunity.microsoft.com/t5/azure-database-support-blog/how-to-change-collation-for-production-azure-sql-databases/ba-p/1723869