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# Introducing MCP Server Configurations for Business Central (Part 2)

> MCP server configurations in Business Central, which are in preview. They control which API pages and actions an MCP client can use, and whether access is read-only or allows writes. Covers the permission model, dynamic tool mode, discovering additional objects and bound actions.

[Watch on YouTube](https://www.youtube.com/watch?v=GeT5E_f9A9Q) · Microsoft Dynamics 365 Business Central (YouTube) · 2026-01-21 · 9:50 · tier official · reviewed (checked by Opus)

## Overview

Part 2 of the MCP server series shows how to create named configurations in Business Central that control what an agent can reach through MCP. A configuration lists the available API pages and actions, and can limit access to read-only or allow write and delete operations. MCP uses the same authentication and permission model as APIs, including entitlements and permissions.

The video also covers dynamic tool mode, which discovers tools on demand through an action search tool, and the discover additional objects toggle. It explains that bound actions on API pages can be called like in normal OData APIs. The MCP server is in preview, and the presenter says support currently covers API pages, with expansion planned.

## Key points

- Prerequisite: the MCP server must be enabled in public preview, which sits under a feature management flag. The feature is work in progress.
- The default configuration grants read access only, so agents cannot change data unless you configure it.
- The default corresponds to no tools selected, with dynamic tool mode and discover additional objects both turned on.
- MCP uses the same authentication and permission model as APIs, including entitlements and permissions.
- A named configuration has a name, a description, and a list of available tools (API pages) with read or modify/delete access. It must be set to active. Unless the allow create, update, delete option is selected, everything stays read-only.
- Copilot Studio supports up to 70 tools, so selecting from all API pages can exceed the limit. Dynamic tool mode discovers tools on demand, but they are not available from the start.
- Methods and bound actions exposed on an API page can be called by the LLM or agent, not only CRUD operations.

## Chapters

- [0:00](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=0s) Introduction and prerequisites
- [1:10](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=70s) MCP authentication and permission model
- [2:22](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=142s) MCP configurations and available tools
- [4:54](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=294s) Bound actions and configuration summary
- [6:11](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=371s) Configuration benefits and vision
- [7:33](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=453s) Call to action and next steps
- [8:15](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=495s) Resources and community links

## Features

| Feature | Status | At | Evidence |
|---|---|---|---|
| MCP Server Configurations | preview, demoed | [1:49](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=109s) | "the MCP server is currently in preview this is work in progress" ([7:12](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=432s)) |
| Dynamic Tool Mode | status not stated | [2:50](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=170s) |  |
| Discover Additional Objects | status not stated | [4:00](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=240s) |  |
| Bound Actions in MCP | status not stated | [5:08](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=308s) |  |
| MCP Read-Only Default | status not stated | [1:24](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=84s) |  |
| MCP Authentication Model | status not stated | [1:10](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=70s) |  |

## Quotes

- [0:35](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=35s) "prerequisites for this video if it is that you must have enabled your MCP server in public preview"
- [1:24](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=84s) "the default configuration, it only grant read access. So it's not like you open up uh want to try something out and then the"
- [3:48](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=228s) "currently C-pilot Studio supports up to 70 tools. If you look at all the API pages in the system, you can easily extend to"
- [4:20](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=260s) "the default configuration that you see actually corresponds to having no tools selected but both dynamic tool mode and discover additional objects set to"
- [5:08](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=308s) "it's not only CRUD operations but anything in your API page that is exposed as a bound action or a method can also be"
- [5:46](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=346s) "On the business central side, you need to create an MCP server configuration where you allow modifications"
- [6:11](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=371s) "it allows you to start with lowrisk readonly scenarios and then as you gain trust in the LLM's abilities you can open up for"
- [7:12](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=432s) "the MCP server is currently in preview this is work in progress and you saw make all functionality available we have started with API"

## Disclaimers in the video

- [0:35](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=35s) preview: you must have enabled your MCP server in public preview
- [7:12](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=432s) preview: the MCP server is currently in preview this is work in progress
- [7:33](https://www.youtube.com/watch?v=GeT5E_f9A9Q&t=453s) coming-later: we have started with API pages and are going to expand from in there. So, look for more videos later

Presenters (as heard): Kenny Ponabidan, Yen Smaller Peterson.
