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You can connect Business Central Online to an MCP-compatible client by using Microsoft’s hosted endpoint, https://mcp.businesscentral.dynamics.com. Claude Code and ChatGPT are documented client examples, but each has a different setup experience. The common requirements are a Business Central MCP configuration, a Microsoft Entra app registration for non-Microsoft hosts, delegated Financials.ReadWrite.All permission with administrator consent, and a Streamable HTTP connection. Your administrator controls which Business Central APIs and operations are exposed; the signed-in user’s own permissions still apply. Start with read-only access, test discovery and a harmless read operation, then enable narrowly scoped write or action tools only when there is a clear business need.
What exactly are you connecting?
The connection is between a Business Central Online tenant and an MCP host. Business Central provides a hosted MCP server at https://mcp.businesscentral.dynamics.com. The host authenticates through Microsoft Entra ID and then discovers the tools that the Business Central administrator has made available.
This is not a second Business Central API endpoint that bypasses normal security. The MCP configuration defines the maximum set of API pages, queries, and operations exposed to the host. The signed-in user’s Business Central permission sets impose a second boundary. A tool is usable only when both layers allow it.
Microsoft’s overview describes the result this way: “All operations are performed with your user identity and permissions, ensuring audit trails show who performed each action.” Read the full overview at Microsoft Learn’s Business Central MCP overview.
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What do you need before starting?
Confirm these prerequisites before you register an application or configure a client. The documented workflow applies to Business Central Online; it is not a general recipe for an on-premises server.
| Requirement | What to confirm | Why it matters |
|---|---|---|
| Business Central edition | An Online tenant, environment, and company | The hosted MCP service is the endpoint covered by Microsoft’s guidance. |
| Business Central administration | The MCP – Admin permission set, or equivalent administrative rights | You need to create, activate, validate, and share MCP configurations. |
| Identity administration | At least the Application Developer role to register an Entra application, plus a tenant administrator who can grant consent | Application registration and consent are separate responsibilities. |
| MCP client | Claude Code, ChatGPT on the web, or another host that supports Streamable HTTP and OAuth 2.0 Authorization Code with PKCE | The client determines the redirect URI and the user interface used for setup. |
| Connection details | Tenant ID, environment name, company name, and (if applicable) an MCP configuration name | Headers can pin the connection to the intended Business Central context. |
Choose the client before creating the app registration. Its redirect URI is part of the OAuth flow, and Claude Code’s callback settings should not be copied into another Claude product without checking that product’s current MCP instructions.
How do you configure the Business Central MCP server?
Configure the server first. This determines which tools a client will discover after authentication.
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- Open the configuration page. In Business Central, search for Model Context Protocol (MCP) Server Configurations.
- Create or select a configuration. You can use the built-in default configuration for discovery and read-only access, or create a named configuration for a specific team or workload.
- Activate API Tools. Select the API pages and API queries the client may use. Queries are read-only.
- Assign only the operations required. For each eligible object, choose the applicable read, create, modify, delete, or action permissions. Do not assume that connecting an MCP client automatically grants write access.
- Review preview features separately. Microsoft labels Data Query Tools as preview and describes them as read-only. Treat that status as a reason to test them in a controlled environment before making them part of a critical process.
- Validate before activation or sharing. Use Validate to catch common configuration problems. An active configuration is read-only to edit; deactivate it before changing its settings.
The default configuration dynamically discovers eligible APIs for read-only use, still subject to each user’s Business Central permissions. If users need to create records, modify data, delete data, or invoke actions, an administrator must explicitly expose those operations in a configuration.
Detailed field behavior and configuration examples are in Microsoft’s Business Central MCP server configuration guide.
How do you register the Microsoft Entra application?
Non-Microsoft hosts need a client application registered in Microsoft Entra ID. Microsoft does not support the Dynamic Client Registration approach described in the MCP specification for this flow, so the client cannot create its own registration automatically.
- Open Microsoft Entra admin center and use App registrations to select an existing registration or create a new one.
- Add the client’s redirect URI. Use the exact URI required by the MCP host you selected. A URI that works for Claude Code may not be valid for ChatGPT or another host.
- Add the delegated API permission. Under Dynamics 365 Business Central, add delegated
Financials.ReadWrite.All. - Record the application (client) ID. The MCP client will use this identifier during OAuth authorization.
- Grant tenant administrator consent. The user who registers the app may not be allowed to consent for the tenant. An administrator must approve the delegated Business Central permission before users can complete sign-in.
You may reuse one app registration for multiple clients when it contains every required redirect URI and the delegated permission. Keep the registration organized: name each redirect URI for its host, remove obsolete URIs, and review consent whenever the client set changes.
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How do you connect Claude Code?
Microsoft’s concrete Claude example is for Claude Code. It uses an HTTP server entry pointing to the Business Central endpoint, the required headers, and an OAuth object containing the Entra application’s client ID and a callback port.
In Claude Code’s MCP configuration, create an HTTP server entry with these values:
- Server URL:
https://mcp.businesscentral.dynamics.com - Transport: Streamable HTTP
- OAuth client ID: the application (client) ID from your Entra registration
- Callback port: the port specified by your Claude Code setup and included in the registered redirect URI
- Headers: add
TenantId,EnvironmentName,Company, and, when needed,ConfigurationName
Start the connection and complete the browser sign-in and consent flow. Replace Microsoft’s illustrative values with your actual tenant ID, environment, company, configuration name, client ID, and callback port. After authorization, inspect the discovered tools rather than assuming every API object is available.
Microsoft documents this host-specific procedure, including the HTTP server and OAuth fields, in Connect to the Business Central MCP server with GitHub Copilot CLI and non-Microsoft hosts. The page does not establish that Claude Desktop uses identical fields or steps. If you use Claude Desktop, follow that client’s current MCP documentation and register its own redirect URI.
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How do you add the server to ChatGPT?
OpenAI documents custom MCP connections for eligible Business and Enterprise/Edu workspaces in ChatGPT on the web. The exact label can vary because OpenAI describes both a current Plugins experience and legacy custom-app configuration, so use the workspace’s current interface rather than relying on an old screenshot.
- Open ChatGPT on the web in the organization workspace where the connection will be used.
- Open the workspace’s Plugins or custom-app area. Choose the option to add a custom MCP server or custom app.
- Enter a name and public HTTPS endpoint. Use
https://mcp.businesscentral.dynamics.com. A locally reachable or plain-HTTP URL is not the documented endpoint for this setup. - Configure authentication. Select the OAuth option and provide the Entra application details and redirect URI required by the ChatGPT flow. The redirect URI must be registered in the same Entra app.
- Review the security warning. OpenAI warns that untrusted MCP servers can create risks such as prompt injection. Proceed only after your organization has vetted the server and its exposed tools.
- Inspect discovered tools and test. Check that the expected Business Central tools appear, then run a permitted read operation. Workspace administrators control who can create and publish an app, and ChatGPT may request confirmation before a write or modify action.
OpenAI’s current instructions and workspace eligibility notes are at Connecting custom MCP servers in ChatGPT. Individual accounts and organization workspaces can have different availability and role requirements; verify those requirements in the workspace where you intend to publish the connection.
Which headers should the client send?
Headers select the Business Central context for a session. A host may be able to omit some of them and discover the context interactively, but client support varies.
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| Header | Purpose | When to use it |
|---|---|---|
TenantId |
Identifies the Microsoft Entra tenant | Use it unless the host reliably derives the tenant from the signed-in identity. |
EnvironmentName |
Selects the Business Central environment, such as a production or sandbox environment | Set it when the tenant contains more than one environment or when you must prevent accidental cross-environment use. |
Company |
Selects the company within the environment | Set it to pin tools to a known company. If omitted on a supported host, company discovery may be available and operational calls can require a company parameter. |
ConfigurationName |
Selects a named MCP configuration | Optional. If omitted, Business Central uses the current default configuration. |
Do not Base64-encode ordinary ASCII names. When Company or ConfigurationName contains non-ASCII characters, Microsoft specifies Base64-encoded UTF-8 in the form =?base64?<encodedvalue>?=. Apply that encoding only to the affected value and test the resulting tool parameters in the actual host.
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The documented connection uses Streamable HTTP. Microsoft states that HTTP/SSE transport is unsupported for this Business Central MCP connection, so selecting an older SSE transport in a client will fail even when the URL and OAuth details are correct.
When a client offers several MCP transport choices, select Streamable HTTP and confirm that the final request targets the HTTPS endpoint. A successful browser sign-in alone does not prove that the transport is correct; the client must also complete MCP initialization and tool discovery.
How do you test the connection safely?
Test in stages so an authentication problem is not confused with a permission or configuration problem.
- Complete OAuth sign-in. Confirm that the browser returns to the client through the registered redirect URI and that the client stores an access token.
- Check initialization. The client should report a connected MCP server rather than only a successful login.
- Inspect the tool list. Compare discovered tools with the API pages, queries, and operations enabled in the selected MCP configuration.
- Run one read operation. Choose a small object the signed-in user can already view. Verify that the returned company and environment are the intended ones.
- Test write or action tools only when necessary. Use a sandbox or controlled record, follow the organization’s approval process, and confirm the resulting audit entry.
- Record the working context. Note the client version, redirect URI, tenant, environment, company, configuration name, and exposed tools so future changes can be diagnosed.
Business Central runs operations as the signed-in user. A client cannot use an MCP configuration to elevate that user’s permissions, and an administrator should not expose a broad write configuration merely to make a missing tool appear.
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The browser reports a redirect URI mismatch
Compare the URI sent by the client with the URI registered in Entra character for character, including scheme, host, path, and port. Claude Code and ChatGPT can require different callback locations. Add the correct URI to the existing app or create a separate app when organizational policy requires isolation.
Sign-in succeeds but no tools appear
Check that the MCP configuration is active, that API Tools include at least one eligible object, and that the user has permission to that object. If you selected a named ConfigurationName, verify its spelling and activation state; otherwise the server may be using the default read-only configuration instead.
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A tool is visible but an operation is denied
Visibility and execution are not the same. Review the operation-level setting in the MCP configuration and the user’s Business Central permission sets. For create, modify, delete, or action operations, confirm that the administrator explicitly enabled the operation rather than assuming the API page grants it.
The client says the transport is unsupported
Change the connection type to Streamable HTTP and remove any HTTP/SSE setting. Keep the endpoint on HTTPS and update the client if its MCP implementation predates Streamable HTTP support.
The wrong company or environment is returned
Set TenantId, EnvironmentName, and Company explicitly. If the host supports discovery, inspect the selected values and include the required company parameter on operational calls. Check non-ASCII names for the specified Base64 UTF-8 encoding.
ChatGPT will not let you publish the app
Publishing is governed by workspace role and policy, not only by successful OAuth. Ask a workspace administrator to review the custom-app permissions and the workspace’s plan eligibility, then repeat tool discovery after the app is approved.
How do Claude Code and ChatGPT differ?
The Business Central endpoint, Entra permission, MCP configuration, and user-permission model are shared. The practical differences are the client’s setup interface, callback requirements, workspace controls, and handling of potentially destructive tools.
| Decision point | Claude Code | ChatGPT on the web |
|---|---|---|
| Documented example | Microsoft provides a concrete HTTP server and OAuth example for Claude Code. | OpenAI documents adding a custom MCP server or app in eligible workspaces. |
| Redirect URI | Use the Claude Code callback settings, including its callback port. | Use the redirect URI required by the ChatGPT custom-app flow; do not reuse a Claude URI without verification. |
| Workspace control | Controlled by your Claude Code deployment and organizational identity policies. | Business and Enterprise/Edu workspace roles govern creation and publishing; availability can differ by workspace. |
| Tool review | Inspect tools after the OAuth connection is initialized. | The documented flow includes reviewing discovered tools and testing them; ChatGPT can request confirmation for write or modify actions. |
| Product scope | The Microsoft example is specifically Claude Code, not a blanket claim about every Claude client. | The documented path is ChatGPT on the web, not necessarily every ChatGPT surface or individual account. |
Choose the host your organization already governs, then register the redirect URI and workspace permissions for that host. The server-side security model does not become broader or narrower merely because you switch clients.
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- Begin read-only. Keep the default configuration when it meets the use case. Add a write or action permission only for a specific API object and documented workflow.
- Separate environments. Prefer a sandbox for initial tests and avoid pointing an experimental client at production until tool discovery and approvals are complete.
- Review both permission layers. Recheck the MCP configuration and the user’s Business Central permission sets whenever a tool is added, removed, or unexpectedly denied.
- Limit app registrations. Reuse an Entra app only when its redirect URIs and consent scope remain understandable; otherwise create a dedicated registration for a client or environment.
- Protect secrets and tokens. Do not paste client secrets or access tokens into prompts, configuration examples, tickets, or source control. Use the client’s supported credential storage.
- Vet custom servers and tools. OpenAI’s warning about prompt injection applies to custom MCP connections. Treat instructions returned by tools as untrusted data, and review any tool that can alter records or trigger actions.
- Monitor changes. Deactivating a configuration, changing its default, removing consent, or changing a user’s permission set can alter the tool list without any client-side change.
- Keep an audit trail. Correlate client-side activity with Business Central records and sign-in logs so the organization can identify the user identity that performed each operation.
What is the practical rollout sequence?
For a team deployment, use a staged rollout instead of handing every user a broad configuration.
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- Pilot: an administrator creates a read-only configuration containing one or two low-risk API pages and validates it in a sandbox.
- Identity setup: the organization registers the chosen host, adds its exact redirect URI, grants delegated permission, and documents who approved consent.
- Client onboarding: one pilot user connects the host, pins tenant, environment, and company headers, and records the discovered tools.
- Permission review: the Business Central administrator compares the tool list with the intended business task and removes unnecessary objects.
- Controlled actions: if a workflow genuinely needs writes or actions, enable only those operations, test with an approval owner, and verify the audit result.
- Publication: workspace administrators publish the client connection to the target group, with instructions that identify the approved environment and company.
- Change control: review the app registration, consent, MCP configuration, and user permissions together whenever the workflow or organization changes.
This sequence keeps authentication, discovery, authorization, and business approval distinct. It also makes it easier to tell whether a failure originates in Entra, the MCP configuration, the client, or Business Central permissions.
What are the key limitations to keep in mind?
- The hosted endpoint and guidance covered here are for Business Central Online.
- HTTP/SSE is not a supported transport for this connection; use Streamable HTTP.
- Non-Microsoft hosts require an Entra app registration because Dynamic Client Registration is not supported for this flow.
- The Microsoft setup example names Claude Code specifically. It does not prove that Claude Desktop or another Claude product has the same fields.
- ChatGPT custom MCP support is documented for eligible Business and Enterprise/Edu workspaces on the web, with role and policy controls.
- Data Query Tools are identified as preview and read-only in Microsoft’s configuration guidance.
- Exposing an operation in MCP does not override the signed-in user’s Business Central permissions.
For the most current server behavior, configuration fields, and non-Microsoft host details, consult Microsoft’s overview and configuration pages together with OpenAI’s ChatGPT guidance. Client interfaces and workspace policies can change independently of the Business Central endpoint.
Frequently Asked Questions
Can I use Claude Desktop instead of Claude Code?
Microsoft’s published connection example is for Claude Code, so you should not assume Claude Desktop accepts the same HTTP entry, callback port, or header fields. Check Claude Desktop’s current MCP documentation, register the redirect URI it specifies, and then verify the tools returned by Business Central.
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Does this setup work with Business Central on-premises?
The hosted endpoint and procedures described here apply to Business Central Online. An on-premises deployment would require its own supported exposure, identity, network, and MCP architecture; do not point this workflow at an on-premises server without product-specific documentation.
Why does an administrator need to approve the Entra permission?
The delegated Business Central permission can require tenant-wide consent, which an ordinary app registrant may not grant. An administrator’s approval establishes that the organization accepts the client’s requested access before users authorize sessions.
Are Data Query Tools safe to use in a production workflow?
They are described as read-only preview functionality, so behavior and support may change. Evaluate them in a sandbox, document the business impact of relying on a preview feature, and avoid making them the sole dependency for a critical process.
Can a client discover the company instead of sending a Company header?
Some hosts can omit the company header and use company discovery, after which an operational tool call may require a company parameter. Because omission support is host-dependent, test discovery with the exact client and do not assume the behavior transfers between hosts.
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