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Customer has a .onmicrosoft.com at the moment for their 365 account. They want to move from this domain to their custom domain. Their mailbox is with a Microsoft exchange server. If I change this in the 365 admin center, it will move their mail box to office 365, which is something they don't want. Do I need the exchange server's DNS setting/record to stop the mailbox binding to office 365?

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    That's not how it works. From your question it isn't clear what you're trying to achieve, but it is clear that you don't understand Office 365. My suggestion would be that you to contract with someone who provides Office 365 consulting services and have them assist you. – joeqwerty Oct 08 '17 at 16:48
  • Your question makes no sense. If your customer has an .onmicrosoft address for their "365 account" then the only way I can begin to make that make any sense is to assume you mean they're already on Office 365,in which case they surely already have an Office 365 mailbox. – Rob Moir Oct 08 '17 at 17:39
  • They could have an Office 365 subscription that doesn't include Exchange Online (Office 365 Business or Office 365 ProPlus). With or without Exchange Online, the act of adding the domain to Office 365 doesn't automatically move the mailboxes from on premises to Office 365. It sounds like the OP wants users to log into Office 365 with their own domain name instead of onmicrosoft.com, which is something that can be done, but there are many more questions that need to be answered. Such as, do they want to sync their on premises users to Office 365? Do they want single sign on? Etc., etc. – joeqwerty Oct 08 '17 at 18:01

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your question is not clear yet i assume you need to add a new domain instead of using .onmicrosoft.com . You can buy and point mx to office 365 and change office 365 default domain .

(1) point mx record

https://support.office.com/en-us/article/Create-DNS-records-at-GoDaddy-for-Office-365-f40a9185-b6d5-4a80-bb31-aa3bb0cab48a (if the domain name is bought from godaddy)

https://support.office.com/en-us/article/Gather-the-information-you-need-to-create-Office-365-DNS-records-77f90d4a-dc7f-4f09-8972-c1b03ea85a67

(2)change default domain settings in office 365 to your custom domain

http://office365support.ca/changing-the-primary-domain-for-users-accounts-office-365/

https://community.spiceworks.com/topic/1988189-office-365-default-domain

Aravinda
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