How to connect Claude to Dynamics 365 Business Central
Short answer
Claude reaches Business Central through a Model Context Protocol server that wraps the API v2.0 and your custom API pages. You can use it from Claude apps or your own code, run the model through the Anthropic API or a cloud marketplace, or swap in a local model when data cannot leave.
Teams that pick Claude usually care about long, careful reasoning over messy business documents: a vendor contract next to a purchase order, a quality complaint next to a nonconformance history. Business Central holds the structured side of that picture, and Claude needs a clean way in.
The modern way in is MCP. A connector exposes named tools such as find_item or get_open_purchase_orders, and Claude calls them as needed, with the user seeing what was called. That replaces fragile copy and paste and keeps credentials out of the chat.
Microsoft has also been moving toward MCP support for Business Central itself, so before building anything check what your version and release wave already offers. What follows works either way, and it shows where the hard parts live: scoping, tenancy and hosting.
What teams use it for
Read a contract against the PO
Attach a supplier agreement, let Claude pull the matching purchase order lines through a tool, and have it list where prices, lead times or payment terms differ from the contract.
Customer complaint investigation
Claude reads a complaint email, looks up the sales shipment, lot numbers on item tracking lines and the production order, and writes a draft root-cause summary with record references.
Quote preparation
From an RFQ document, Claude finds matching items and past sales prices, flags missing items, and drafts a quote as notes for a salesperson to enter.
Finance close commentary
Given the trial balance and a few drill-down tools, Claude drafts variance commentary for the controller to edit.
AL code assistance
Developers use Claude Code or the Claude apps to draft AL extensions, tests and migrations. No customer data is needed for this.
Microsoft Dynamics 365 Business Central integration surface
- API v2.0 and custom API pages (APIPublisher, APIGroup, APIVersion in AL) are the structured data source. MCP tools should map to these and not to raw SQL.
- OData V4 web services as a fallback for pages and queries not covered by the API, including data from partner add-ons.
- Entra ID app registration with OAuth 2.0 client credentials. Register the app inside Business Central under Microsoft Entra Applications and assign a permission set.
- Attachments and documents: incoming document records and file attachments on records can be read through the API, which lets Claude see the PDF that came with a purchase invoice. Check size limits.
- Telemetry through Azure Application Insights is available for SaaS tenants and is a good place to monitor what the connector's service identity is doing.
How it works
- 1
Check for an existing connector
Look at what Microsoft and the Claude connector directory offer for Business Central in your version. Treat any connector as code to be reviewed for scope and logging.
- 2
Otherwise build a small MCP server
Implement tools in TypeScript or Python with the official MCP SDK. Typical tools: search_items, get_sales_order, list_open_purchase_lines, get_item_ledger_entries. Return concise JSON with record numbers.
- 3
Choose the transport
stdio for a single developer on a laptop. Streamable HTTP with OAuth for a shared server that several users reach from Claude apps.
- 4
Scope identity per user where possible
Prefer delegated auth so Business Central permissions follow the person. If you use one service identity, narrow it hard and log the requesting user.
- 5
Pick how Claude is served
Anthropic API or Claude for work plans, Claude through AWS Bedrock, or Google Vertex AI, depending on where your security team wants the traffic and billing to sit.
- 6
Run an evaluation set
Write 40 realistic questions with known answers from your company. Run them weekly, especially after Business Central release waves.
Example flows
Complaint to root-cause draft
Trigger: Quality manager pastes a customer complaint and a lot number into Claude.
- Claude calls the tool for item tracking entries by lot and finds the sales shipment and customer.
- It calls a custom tool for the production order that produced the lot and reads the consumption lines.
- It lists vendor lots used in the output and flags one vendor lot shared with two other complaints.
- It drafts an 8D-style summary with record numbers for the quality manager to edit.
Result: A traceable first draft in minutes, with every claim linked to a Business Central record.
Contract versus PO review
Trigger: Buyer uploads a PDF supply agreement and gives a PO number.
- Claude reads the PDF and extracts price, lead time and payment terms.
- It calls get_purchase_order and compares header and line values.
- It lists mismatches with the page and clause for each.
Result: A discrepancy list the buyer takes to the vendor, with no write to the system.
Keeping data on-prem
Claude is a hosted model family, so a pure on-premises, air-gapped Business Central install cannot call it directly. Options in order of strictness: use Claude through your own cloud account on AWS Bedrock or Google Vertex AI to keep traffic inside your cloud tenancy and region; keep Business Central on-premises but route through an approved gateway for non-sensitive workflows; or serve an open-weight model locally and keep the same MCP server. The MCP tool layer is model-agnostic, so a team can start with Claude for non-restricted data and move specific workflows to a local model without rewriting the connector. Where export-controlled technical data or customer drawings are in scope, assume the local route unless your compliance team approves otherwise.
Security checklist
- Review any third-party connector's tool list and code before connecting it to a production tenant.
- Use read-only tools and a minimal permission set first; require approval for any tool that creates records.
- Understand the data handling terms of the plan you use (consumer, team, enterprise, API or cloud marketplace) and record them.
- Log tool calls with user, tool and arguments, and keep logs outside the model's reach.
- Treat text inside documents as untrusted: a vendor PDF can contain instructions meant for the model. Tools should never allow destructive actions on the strength of document text.
Ways to get it done
Off-the-shelf MCP connector or Microsoft-provided endpoint
Effort: Days, plus a security review.
Fastest start for SaaS tenants if the tool set matches what you need.
In-house MCP server on API v2.0 and custom API pages
Effort: Two to four weeks for a useful read-only set.
Teams with a developer comfortable in AL and TypeScript or Python.
Partner-built connector with a private model fallback (Netray or another)
Effort: Several weeks, including evaluation.
Mixed estates where some data can use Claude and some must stay local.
Pitfalls
- !Exposing a generic run-any-OData-query tool. The model will ask for entire tables.
- !Skipping delegated auth, then discovering every user effectively has the service account's access.
- !Prompt injection from vendor documents that tell the model to ignore its instructions.
- !Returning huge JSON blobs. Summarise at the tool layer and let Claude ask for detail.
- !Not retesting after a Business Central release wave changes an API shape.
Frequently asked questions
Does Claude have a native Business Central connector?
Connector availability moves fast, and Microsoft has been adding MCP support around Business Central. Check the current connector directory and Microsoft release notes. If it does not cover your needs, a small custom MCP server over API v2.0 is a well-trodden path.
Can I use Claude through AWS Bedrock or Google Vertex AI with Business Central?
Yes. The MCP server and tool layer do not care which endpoint serves the model. Bedrock or Vertex keep inference inside your cloud account and region, which some procurement and compliance teams prefer over a direct vendor API.
Is Claude better than ChatGPT for ERP work?
There is no universal answer. Run your own evaluation set against both on your real questions. Because MCP is an open protocol, the same Business Central tool server can serve Claude, ChatGPT and other clients, so you do not have to bet on one.
Can Claude run on-premises?
Not as a self-hosted model. For on-premises requirements use Claude via your cloud account where acceptable, or pair your MCP server with a local open-weight model. Some customers use Claude for development and non-sensitive work and a local model for restricted data.
Will Claude change data in Business Central?
Only if you give it tools that write. Start read-only. If you add writes, limit them to drafts with a human posting step, and log every call. Claude then speeds up preparation without taking over accountability.
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