Power Query: How to Use Parameters, Data Sources and New Query in Home Tab a Complete Guide to Data Connectivity and Automation

Power Query is a powerful data transformation and automation tool built into Microsoft Excel and Power BI. It allows users to connect to various data sources, clean and shape data, and automate workflows—all without writing complex code. The Home tab in Power Query is the central hub for managing queries, connecting to data, and configuring parameters.

Managing Data Sources in Excel: This image shows the data source settings interface within an Excel workbook, featuring a list of country names. Options for modifying, merging, and managing columns are highlighted in the ribbon. The Query Settings panel details the applied data transformation steps.

Power Query How to Use Parameters, Data Sources and New Query in Home Tab a Complete Guide to Data Connectivity and Automation

In this guide, we’ll explore Power Query How to Use Parameters, Data Sources and New Query in Home Tab a Complete Guide to Data Connectivity and Automation:

1. New Query – Connecting to and importing data from various sources.

2. Data Sources – Managing existing connections and credentials.

3. Manage Parameters – Creating dynamic inputs to make queries flexible and reusable.

Whether you're building dashboards, cleaning datasets, or automating reports, mastering these tools will help you work smarter and more efficiently.

1. New Query: Connecting to Data Sources

The New Query section is where you begin your data journey in Power Query. It allows you to connect to a wide variety of data sources, both local and cloud-based.

Key Data Source Categories

a. From File

• Excel Workbook

• CSV

• XML

• JSON

• Folder

Use Case: Ideal for importing structured data stored locally or on a network.

b. From Database

• SQL Server

• Access

• Oracle

• MySQL

• PostgreSQL

• Azure SQL Database

Use Case: Connect to enterprise databases for real-time or scheduled data extraction.

c. From Online Services

• SharePoint Folder

• Microsoft Exchange

• Dynamics 365

• Salesforce

• Azure Blob Storage

Use Case: Useful for cloud-based data integration and business application reporting.

d. From Other Sources

• Web

• OData Feed

• Blank Query

• R or Python scripts (Power BI only)

Use Case: Enables advanced data extraction and scripting for custom transformations.

How to Use New Query

1. Open Power Query Editor via Data > Get Data or Transform Data in Power BI.

2. Click Home > New Source.

3. Select your desired data source.

4. Configure connection settings (e.g., file path, credentials).

5. Load or transform the data in the editor.

Benefits

• Connect to virtually any data source

• Centralized data import process

• Supports both structured and semi-structured data

2. Data Sources: Managing Connections and Credentials

Once you’ve connected to data, Power Query stores metadata about your sources. The Data Sources section helps you manage these connections securely and efficiently.

a. Data Source Settings

• View all connected data sources in your workbook or Power BI file.

• Edit credentials, privacy levels, and permissions.

• Clear cache or reset connections.

How to Access:

1. Go to Home > Data Source Settings.

2. Choose Global or Current Workbook settings.

3. Edit or delete connections as needed.

b. Privacy Levels

• Control how data from different sources is combined.

• Options include:

  • Public

  • Organizational

  • Private

Use Case: Prevent sensitive data from being inadvertently exposed during merges or joins.

c. Credential Management

• Store login information securely.

• Choose authentication methods (e.g., Windows, Basic, OAuth).

Tip: Always review credentials when sharing files to avoid access issues.

Benefits

• Centralized control over data access

• Enhanced security and compliance

• Simplifies troubleshooting and auditing

3. Manage Parameters: Creating Dynamic Inputs

Parameters in Power Query allow you to create dynamic, reusable queries. Instead of hardcoding values like file paths, dates, or filters, you can define parameters and reference them throughout your queries.

a. Creating a Parameter

1. Go to Home > Manage Parameters > New Parameter.

2. Define:

   • Name

   • Description

   • Data Type (e.g., Text, Number, Date)

   • Suggested Values (List, Query, or Any Value)

   • Default Value

   • Current Value

3. Click OK to create the parameter.

b. Using Parameters in Queries

• Replace static values with parameter references.

• Use parameters in:

  • File paths

  • Filter conditions

  • API URLs

  • Database queries

Example: Instead of hardcoding a file path, use a parameter called FilePath and reference it in the query source.

c. Parameter Types

• Static Parameters: Manually entered values.

• Dynamic Parameters: Values pulled from other queries or user input.

d. Benefits of Parameters

• Make queries reusable across projects

• Simplify maintenance and updates

• Enable user-driven filtering and customization

• Support advanced automation scenarios

Advanced Tips for Power Query Home Tab

1. Use Parameters for Environment Switching

Create parameters for database environments (e.g., Dev, Test, Prod) and switch connections dynamically.

2. Combine Folder Queries with Parameters

Use a parameter to define the folder path and load all files dynamically using From Folder.

3. Secure Data Access with Credential Management

Regularly audit your Data Source Settings to ensure credentials are up to date and privacy levels are appropriate.

4. Use Blank Queries for Custom M Code

Start with a Blank Query to write custom transformations using Power Query’s M language.

Common Issues and Troubleshooting

Issue: Data Source Not Refreshing

Solution: Check credentials and privacy settings in Data Source Settings. Re-authenticate if needed.

Issue: Parameter Not Updating

Solution: Ensure the parameter is referenced correctly and refresh the query after changing its value.

Issue: Credential Errors When Sharing Files

Solution: Use organizational credentials or prompt users to re-enter credentials upon opening.

Issue: Query Errors After Moving Files

Solution: Replace hardcoded paths with parameters to make file locations dynamic.

Conclusion

The Home tab in Power Query is your command center for building robust, flexible, and secure data workflows. By mastering the New Query, Data Sources, and Manage Parameters sections, you can:

• Connect to diverse data sources

• Secure and manage credentials

• Create dynamic, reusable queries

• Automate data preparation tasks

Whether you're working in Excel or Power BI, these tools will help you streamline your data processes and build scalable solutions for reporting, analysis, and decision-making.