/bc-mcp — Business Central MCP Server + Copilot Studio Agent Authoring

Business Central (BC28 / Wave 1 2026) ships a published MCP server that lets Copilot Studio, GitHub Copilot, Claude Code, and any MCP-capable agent read and write BC records via Entra ID authentication. This skill covers installation, Entra auth setup, Copilot Studio agent creation, action wiring, and publish to Teams/M365.

STATUS: Business Central MCP server GA status verified September 2026. Verify current package name and auth flow at author time — BC releases twice yearly (Wave 1 + Wave 2). Confirm against current BC release notes before starting.

When to invoke

• Client runs Business Central and wants agent access to BC data (sales orders, AR/AP, inventory, GL, custom AL extension APIs)
• Client wants to author a Copilot Studio agent backed by BC and publish it to Teams or M365
• Nexus is briefed on a D365 Business Applications engagement — check if BC MCP is the right surface before defaulting to REST/OData APIs
• Client asks about BC28 first-party agents (Sales Order Agent, Payables Agent) — advise on customisation limits vs custom agent authoring path

Steps

1. Identify BC surface and version. Confirm the client's BC version — BC28 (Wave 1 2026) and later include the MCP server and first-party agents. Earlier versions may require a different integration path. Confirm which BC modules are licensed (Sales, Finance, Supply Chain, Manufacturing) — this determines what data the agent can access and what write operations are available.
2. Install the BC MCP server. The MCP server is published by Microsoft. Verify the current package name and install method at author time against Microsoft Learn BC developer documentation — the install path may have updated since this document was authored.

   # verify current install method at author time against:
   # https://learn.microsoft.com/en-us/dynamics365/business-central/dev-itpro/ai/

3. Entra ID auth setup. The BC MCP server uses Microsoft Entra ID authentication exclusively. Two supported auth paths:

   • Device code flow — user authenticates interactively; suitable for human-in-the-loop agents
   • Managed identity — for automated/unattended agents running on Azure; preferred for production deployments

   Register an Entra ID app registration with the required BC API permissions. Confirm permission scopes against current BC Entra documentation — scopes have evolved through Wave 1 2026.

4. Copilot Studio custom agent creation. In Copilot Studio:
   • Create a new agent
   • Add the BC MCP server as a connected tool — Copilot Studio creates a Power Platform connector behind the scenes
   • Verify ACP (Advanced Connector Policies, GA June 2026) are configured to allow the BC MCP server — ACP is the current governance layer for certified connectors, not classic DLP alone
   • Define topics and actions that map to BC operations: read sales orders, check credit limits, post payments, query inventory
5. Wire tools and plugins. Map BC MCP server capabilities to Copilot Studio agent actions:
   • Standard BC records: sales orders, purchase orders, inventory, AR/AP entries, GL entries
   • Custom AL extension APIs: verify with the client's BC development team which custom APIs are exposed and what their permission requirements are
   • Write operations: apply least-privilege principle — write access requires explicit BC security configuration and client approval
6. Publish to Teams / M365. Follow the standard Copilot Studio publish flow — configure channel (Teams, M365 Copilot, Web), submit for admin approval. Teams and M365 Copilot channels require tenant admin allow-listing. Reference skills/copilot-studio-build/SKILL.md for the full publish checklist.
7. Test. Run an acceptance suite covering:
   • Read operations: query sales orders, check inventory levels, look up customer credit
   • Write operations (if configured): create a sales order, post a payment — run in a test BC environment, not production
   • Auth failure scenarios: expired token, permission denied, insufficient BC security role
   • BC business logic enforcement: server-side validation must fire correctly for all write operations

Deliverable format

• Working Copilot Studio agent that reads (and optionally writes) BC data, with a test log
• Entra ID app registration record (client ID, redirect URIs, permission scopes granted)
• Example agent queries with expected BC responses (5+ representative queries)
• Auth configuration — managed identity binding or device code flow documentation
• ACP policy record (which BC MCP connector actions are allowed per environment)

Non-negotiables

• Verify BC MCP server GA status and package name at author time. BC releases twice yearly — status from September 2026 may have changed.
• Entra ID auth only — no API key shortcuts. Device code flow or managed identity are the only acceptable auth paths. Direct API key injection into the agent is not supported and is a security anti-pattern.
• ACP governance verified before publish. Copilot Studio MCP connections create Power Platform connectors — they fall under ACP. Classic DLP alone is insufficient for MCP server governance from June 2026.
• Write operations require explicit client sign-off. Agent write access to BC records is a business risk — scope write permissions separately from read, and get explicit client approval before enabling any autonomous write operations.
• BC business logic is server-side — do not replicate it in the agent. Sales order validation, credit checks, posting rules live in BC. The agent calls BC operations; it does not duplicate the logic in conversation flows or prompts.

References

• Create Agents in Copilot Studio that Connect to Business Central — Microsoft Learn — verify current at author time
• Configure Copilot and agent capabilities — Business Central — verify current at author time
• List of all MCP servers — Microsoft Learn Connectors
• Connect your agent to an existing MCP server — Copilot Studio
• Use connectors in Copilot Studio agents — Microsoft Learn
• Athanasios recon: .squad/coach/knowledge/2026-09-04-enterprise-integration-recon.md (Angle 2 — Business Central)
• Decision: .squad/decisions/2026-09-04-nexus-enterprise-integration-extension.md