Tuesday, 10 February 2026

The Business Central MCP Server (BLOG 2 OF 4)

 Enabling, Configuring, and Understanding the Architecture


Introduction

In Blog 1, we explored what AI agents and MCP are. Now let’s focus on Microsoft’s implementation: the Business Central MCP Server, announced in public preview with wave 2 (release 27.1). We will cover what it does, how to enable it, how to configure it, and the architectural role of the BcMCPProxy.


What the BC MCP Server Does

The BC MCP Server exposes Business Central’s API pages as MCP tools. This means any MCP-compatible AI client can discover and call BC operations dynamically, without needing hardcoded API knowledge.

Supported Operations

        Read: Query data from any exposed BC API page (customers, items, GL entries, vendors, etc.).

        Create: Create new records such as sales orders, purchase orders, and journal entries.

        Modify: Update existing records, modify customer details, adjust quantities, and change dates.

        Delete: Remove records (with appropriate permissions configured).

        Bound Actions: Execute OData-bound actions such as Post, Send, or Release.

Default Behavior

By default, the MCP Server gives agents read-only access to all exposed Business Central API pages. Write operations (create, modify, delete) and bound actions must be explicitly enabled through configuration.


Enabling the MCP Server

Follow these steps in your Business Central environment:

1.    Open Business Central and search for Feature Management.

2.    Locate and enable the feature: “Feature: Enable MCP Server access.”



3.    Ensure you have the MCP - ADMIN permission set assigned to your user.

Once enabled, you can create and manage MCP configurations.


Configuring the MCP Server

1.    Search for and open the Model Context Protocol (MCP) Server Configurations page.

2.    Click New to create a configuration.

3.    Enter a Code and Description (e.g., Code: BC, Description: Claude Desktop Integration).

4.    In the Tools section, add API page objects. Click “Add All Standard APIs as Tools” for a quick start.

5.    On each tool line, configure the allowed operations: Allow Read, Allow Create, Allow Modify, Allow Delete, Allow Bound Actions.

6.    At the header level, toggle Active to enable the configuration.

Configuration Options

Dynamic Tool Mode: When enabled, clients can search for tools dynamically at runtime instead of having them pre-assigned.




Architecture: The BcMCPProxy

Currently, the only officially supported MCP client is Microsoft Copilot Studio. To use other clients like Claude Desktop, VS Code, or Cursor, you need a proxy that bridges the gap.

The BcMCPProxy is a .NET 8 console application from Microsoft’s BCTech repository. It sits between your AI client and the BC MCP Server, handling authentication and protocol translation.


Data Flow

┌─────────────────────┐     ┌─────────────────────┐     ┌─────────────────────┐

│  Claude Desktop     │ --> │  BcMCPProxy.exe     │ --> │  BC MCP Server      │

│  (AI Client)        │     │  (Local Proxy)      │     │  (Business Central) │

└─────────────────────┘     └─────────────────────┘     └─────────────────────┘

      MCP/stdio                Azure Auth                  BC APIs

        Claude Desktop sends MCP requests via stdio to the proxy executable.

        BcMCPProxy.exe authenticates using Azure AD delegated permissions and forwards the request.

        The BC MCP Server executes the operation against Business Central and returns the result.

        The proxy relays the response back to Claude Desktop for natural-language presentation.


Two Proxy Options

 

.NET Proxy (BcMCPProxy)

Python Proxy

Platform

Windows only (.exe)

Windows, Mac, Linux

Installation

Build from source

pip install bc-mcp-proxy

Best For

Windows-only teams

Cross-platform teams

Repository

BCTech/BcMCPProxy

BCTech/BcMCPProxyPython



What’s Next?

In Blog 3, we walk through the hands-on steps: creating the Azure App Registration, building BcMCPProxy.exe in Visual Studio, and connecting it to Claude Desktop.

  

Blog Series Navigation

   Blog 1: Understanding AI Agents and MCP

▶ Blog 2: The Business Central MCP Server (You are here)

   Blog 3: Building BcMCPProxy.exe and Connecting to Claude Desktop

   Blog 4: Testing Scenarios and Best Practices



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