Unlocking ERP Potential with MCP Technology

1. What Is MCP, and Why Does It Matter?
2. A New Level of ERP Accessibility
3. Context-Aware by Design
4. What This Means for Dynamics 365 Finance
5. Real-World Examples: What Agents Can Do
6. General Rule of Thumb
7. What the MCP ERP Tool Can Do Today
8. What the MCP ERP Tool Can Not Do Today
9. Current Limitations (Preview Phase)
10. Why This Matters Now
11. One Final Thought: Prompts Matter

The arrival of the Dynamic MCP Server for Dynamics 365 Finance & Supply Chain Management marks a turning point in how AI agents interact with ERP systems. This is not just another integration layer—it’s a foundational shift toward truly autonomous, secure, and scalable AI-driven ERP operations.

For organizations running Dynamics 365, MCP unlocks a new reality: AI agents that don’t just analyze data, but navigate the ERP UI, execute real business actions, and respect security rules—just like a human user would.

What Is MCP, and Why Does It Matter?

The Model Context Protocol (MCP) defines a common language for interactions between AI agents, applications, data, and business logic. Instead of relying on custom APIs or fragile point-to-point integrations, MCP provides a standardized, context-aware framework to access ERP functionality.

In practical terms, MCP allows AI agents to:

• Interact with ERP systems in a consistent and secure way
• Automatically respect roles, permissions, and audit rules
• Operate across environments without custom integration code

For IT teams, this means lower maintenance costs, fewer breaking changes, and faster innovation.

A New Level of ERP Accessibility

The Dynamic MCP Server exposes tens of thousands of ERP forms and hundreds of thousands of features across finance, supply chain, HR, manufacturing, and project management.

AI agents interact with these features through server APIs, in the same way users interact with the client UI:

• Opening forms and tabs
• Navigating records
• Filtering and sorting grids
• Creating, updating, or deleting data
• Triggering standard and custom menu actions

Every action automatically inherits:

• Existing security roles
• Permission checks
• Audit and compliance controls

No shortcuts. No bypassing governance.

Context-Aware by Design

One of the most powerful aspects of the Dynamic MCP Server is its dynamic context management.

With every tool call, the server updates the agent’s context based on:

• User permissions
• Application configuration
• Extensions and ISV customizations

This means agents always have an accurate, real-time view of what actions and data are available—nothing more, nothing less. Even customizations and ISV solutions are automatically surfaced within the MCP framework.

What This Means for Dynamics 365 Finance

With MCP in place, Dynamics 365 Finance becomes:

• Fully navigable by AI agents
• Accessible without code for professional users
• Extensible to custom and ISV solutions
• Ready for standalone, agent-driven ERP scenarios

Your ERP is no longer just a system of record—it becomes an ecosystem of intelligent agents executing real operational work.

Real-World Examples: What Agents Can Do

Using natural language prompts, agents can already handle scenarios such as:

Core Operations

• Inventory checks by item, site, warehouse, or location
• Creating sales orders, purchase orders, and production orders
• Vendor and customer analysis
• Posting and validating journals
• Printing invoices and documents

Advanced Business Scenarios

• Comparing setups across legal entities
• Exporting and importing data via Data Management
• Duplicating projects with full structures (WBS, budgets, forecasts)
• Creating BOMs with files and number sequences
• Performing customer risk analysis
• Creating new legal entities by copying existing setups

All of this happens through the ERP UI logic, not external scripts or brittle APIs.

General Rule of Thumb

If a user can manually read, update, or create data via the Dynamics 365 UI, an AI agent using MCP can usually do the same.

That’s the real breakthrough.

What the MCP ERP Tool Can Do Today

✅ Open and close forms and tabs
✅ Navigate records
✅ Enter and modify data
✅ Filter and sort grids
✅ Trigger standard and custom actions
✅ Read field values and metadata
✅ Create, read, update, and delete records
✅ Validate business rules

What the MCP ERP Tool Can Not Do Today

❌ Create Saved Views

❌ Use Advanced Filter

Current Limitations (Preview Phase)

As MCP is still in preview, some limitations apply:

• Language: Tool metadata is returned in US English
• Date & number formats: ISO format only
• Unsupported controls: calendars, org charts, HTML editors, images, attachments
• No advanced grid filters (e.g., between dates)
• Limited system admin access
• No report rendering or document viewer support

These limitations are important—but they do not diminish the transformational nature of the platform.

Why This Matters Now

The Dynamic MCP Server is not just a technical enhancement—it’s the foundation for next-generation AI ERP.

For the first time, AI agents can:

• Perform real operational actions
• Operate securely inside ERP boundaries
• Scale across environments without custom development

If you’re using Dynamics 365 Finance, now is the perfect time to start experimenting:

1. Begin with simple workflows (inventory checks, order creation)
2. Validate security and accuracy
3. Gradually expand to complex, multi-step business processes

One Final Thought: Prompts Matter

The power of MCP is undeniable—but prompt quality is critical. Clear intent, precise wording, and structured instructions make the difference between success and failure.

Ask the right question, and the agent becomes a powerful digital colleague.