Build Dynamics 365 Business Central-Powered Applications in Cursor with CData Code Assist MCP

Cursor is an AI-powered code editor that integrates agentic AI into everyday development workflows. With support for MCP, Cursor can connect to local tools and enterprise data sources directly from the editor, enabling natural language interaction with live systems without switching context.

Model Context Protocol (MCP) is an open standard for connecting LLM clients to external services through structured tool interfaces. MCP servers expose capabilities such as schema discovery and live querying, allowing AI agents to retrieve and reason over real-time data safely and consistently.

In this article, we guide you through installing the CData Code Assist MCP for Dynamics 365 Business Central, configuring the connection to Dynamics 365 Business Central, connecting the Code Assist MCP add-on to Cursor, and querying live Dynamics 365 Business Central data from within the editor.

Step 1: Download and install the CData Code Assist MCP for Dynamics 365 Business Central

1. To begin, download the CData Code Assist MCP for Dynamics 365 Business Central
2. Find and double-click the installer to begin the installation
3. Run the installer and follow the prompts to complete the installation

When the installation is complete, you are ready to configure your Code Assist MCP add-on by connecting to Dynamics 365 Business Central.

Step 2: Configure the connection to Dynamics 365 Business Central

1. After installation, open the CData Code Assist MCP for Dynamics 365 Business Central configuration wizard

   NOTE: If the wizard does not open automatically, search for "CData Code Assist MCP for Dynamics 365 Business Central" in the Windows search bar and open the application.

   
2. In MCP Configuration > Configuration Name, either select an existing configuration or choose to create a new one
3. Name the configuration (e.g. "cdata_d365businesscentral") and click OK

4. Enter the appropriate connection properties in the configuration wizard

   To authenticate to Dynamics 365 Business Central, you must select an AuthScheme and provide the required properties (OAuth by default).

   All Methods

   Specify the OrganizationUrl. If you have multiple companies in your organization, you must also specify the Company to indicate which company you would like to connect to. Company does not need to be specified if you have only one company.

   Access Key

   To authenticate with an Access Key, set AuthScheme to "AccessKey" and provide the User and AccessKey properties.

   To obtain the User and AccessKey values, navigate to the Users page in Dynamics 365 Business Central and then click on Edit. The User Name and Web Service Access Key values are what you will enter as the User and AccessKey connection string properties. Note that the User Name is not your email address. It is a shortened user name.

   If you wish to authenticate through other methods, refer to the Help documentation.

   
5. Click Connect to authenticate with Dynamics 365 Business Central through OAuth
6. Then, click Save Configuration to save the Code Assist MCP add-on

This process creates a .mcp configuration file that Cursor will reference when launching the Code Assist MCP add-on. Now with your Code Assist MCP add-on configured, you are ready to connect it to Cursor.

Step 3: Connect the Code Assist MCP add-on to Cursor

1. Download the Cursor desktop application and complete the sign-up flow for your account
2. From the top menu, click Settings to open the settings panel
3. In the left navigation, open the Tools & MCP tab and click Add Custom MCP

Option 1: Manually add the MCP configuration

1. Cursor opens an mcp.json file in the editor
2. Add the code shown below and save the file

{
  "mcpServers": {
    "cdata-local": {
      "command": "C:/Program Files/Java/jdk-17/bin/java.exe",
      "args": [
        "-jar",
        "C:/Program Files/CData/CData Code Assist MCP for Dynamics 365 Business Central/lib/cdata.mcp.d365businesscentral.jar",
        "cdata_d365businesscentral"
      ]
    }
  }
}



NOTE: The command value should point to your Java 17+ java.exe executable, and the JAR path should point to the installed CData Code Assist MCP add-on .jar file. The final argument must match the MCP configuration name you saved in the CData configuration wizard (e.g. "cdata_d365businesscentral").

Option 2: Copy the MCP configuration from the CData Code Assist MCP for Dynamics 365 Business Central UI

1. After saving and testing your connection in the configuration wizard, click Next

2. Select Cursor from the AI MCP Tool dropdown

3. Follow the MCP Client Instructions to create the required folders for the MCP config

4. Copy the displayed JSON code and paste it into your configuration file
5. In Cursor, open the project folder you created with the mcp.json config
4. The Code Assist MCP add-on should appear as Running under Installed MCP Servers

Step 4: Query live Dynamics 365 Business Central data in Cursor

1. From the top bar, click Toggle AI Pane to open the chat window
2. Ask questions about your Dynamics 365 Business Central data using natural language. For example:

   "List all tables available in my Dynamics 365 Business Central data connection."

   

Cursor is now fully integrated with CData Code Assist MCP for Dynamics 365 Business Central and can use the MCP tools exposed to explore schemas and execute live queries against Dynamics 365 Business Central.

Build with Code Assist MCP. Deploy with CData Drivers.

Download Code Assist MCP for free and give your AI tools schema-aware access to live Dynamics 365 Business Central data during development. When you're ready to move to production, CData Dynamics 365 Business Central Drivers deliver the same SQL-based access with enterprise-grade performance, security, and reliability.

Visit the CData Community to share insights, ask questions, and explore what's possible with MCP-powered AI workflows.