This data deletion tool is useful if you want to ‘clean’ a company from transactional data. It could for example be that you have been testing transactions in a company that you want to use for a go-live or you just want to have a clean company without transactions for a demo, training or testing session.
It is a newer version of the tool that was developed by Olof Simren described here: https://www.olofsimren.com/record-deletion-tool-for-dynamics-nav-2015/