Given a languaje $\mathcal{L}=(\mathcal{C},\mathcal{F},\mathcal{R})$ and $\mathcal{M}=(M,\mathcal{C}^\mathcal{M},\mathcal{F}^\mathcal{M},\mathcal{R}^\mathcal{M})$ an $\mathcal{L}$-structure. We can define a new lenguage $\mathcal{L}_\mathcal{M}$ by adjoining to $\mathcal{L}$ de elements of $M$ as constants, and we can consider the set $\text{Diag}(\mathcal{M})$ of sentences of $\mathcal{L}_\mathcal{M}$ corresponding to the atomic formulas or negation of atomic formulas of $\mathcal{M}$ that are true in this model. If I am not mistaken, this set is called the atomic diagram of $\mathcal{M}$.
I have read some times that $\text{Diag}(\mathcal{M})$ is a finite set when $M$ is finite, or some times this set is refered as a single formula $\phi(m_1,...,m_n)$. Why is this true?
As there are infinitely many terms in $\mathcal{M}$, so there are infinitely many atomic formulas. So probably this finitude refers to a subset of $\text{Diag}(\mathcal{M})$ that have the entire set as logical consequence (and if this set is finite, we can consider just one sentence using the conjunction of the finite set). If that is the case, why this finite subset exist?