How to integrate Erpnext MCP with LlamaIndex

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Introduction

This guide walks you through connecting Erpnext to LlamaIndex using the Composio tool router. By the end, you'll have a working Erpnext agent that can list overdue tasks for all projects, create a new customer record, get all open purchase orders through natural language commands.

This guide will help you understand how to give your LlamaIndex agent real control over a Erpnext account through Composio's Erpnext MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

TL;DR

Here's what you'll learn:
  • Set your OpenAI and Composio API keys
  • Install LlamaIndex and Composio packages
  • Create a Composio Tool Router session for Erpnext
  • Connect LlamaIndex to the Erpnext MCP server
  • Build a Erpnext-powered agent using LlamaIndex
  • Interact with Erpnext through natural language

What is LlamaIndex?

LlamaIndex is a data framework for building LLM applications. It provides tools for connecting LLMs to external data sources and services through agents and tools.

Key features include:

  • ReAct Agent: Reasoning and acting pattern for tool-using agents
  • MCP Tools: Native support for Model Context Protocol
  • Context Management: Maintain conversation context across interactions
  • Async Support: Built for async/await patterns

What is the Erpnext MCP server, and what's possible with it?

The Erpnext MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Erpnext account. It provides structured and secure access so your agent can perform Erpnext operations on your behalf.

Supported Tools & Triggers

Tools
Add CommentTool to add a comment to a document in ERPNext/Frappe.
Add TagTool to add a tag to a document in ERPNext.
Apply WorkflowTool to apply a workflow action to a document in ERPNext/Frappe.
Cancel DocumentCancel a submitted document in ERPNext/Frappe to change its status from Submitted to Cancelled.
Create DocumentTool to create a new document of a specific DocType in ERPNext.
Create TimesheetTool to create a new Timesheet record in ERPNext.
Create WebhookTool to create a new webhook configuration in ERPNext.
Delete DocumentTool to delete a document using the Frappe client API.
Delete DocumentTool to delete a specific document by DocType and name.
Download file from ERPNextTool to download a file from ERPNext by its URL.
Download PDF DocumentTool to download a document as PDF from ERPNext with optional print format.
Get All LanguagesTool to get a list of all available languages in the ERPNext/Frappe system.
Get All RolesTool to get a list of all roles available in the ERPNext system.
Get DocumentTool to get a single document by DocType and name or filters from Frappe/ERPNext.
Get Document CountTool to get the count of documents matching specified filters in ERPNext/Frappe.
Get DocType MetadataTool to retrieve complete DocType metadata/schema including field definitions, field types, permissions, and configurations.
Get DocumentTool to retrieve a specific document by its DocType and name (ID).
Get Document with MetadataTool to retrieve a document with full metadata including attachments, comments, activity logs, and related information.
Get Exchange RateTool to get the currency exchange rate between two currencies in ERPNext.
Get Fiscal YearTool to get fiscal year information for a given date in ERPNext.
Get Framework VersionTool to get the Frappe framework version and all installed app versions.
Get Item DetailsTool to get detailed item information including pricing, taxes, and stock details from ERPNext.
Get List of DocumentsTool to retrieve a list of documents from ERPNext/Frappe with filtering, field selection, and pagination.
Get Logged UserTool to get the email/ID of the currently authenticated user.
Get Party DetailsTool to get comprehensive customer or supplier details including addresses, contacts, and default financial settings.
Get Payment EntryTool to get payment entry details for an invoice or order from ERPNext.
Get Stock BalanceTool to retrieve the current stock balance for a specific item in a warehouse.
Get TimezonesTool to get a list of all available timezones in the ERPNext system.
Get User RolesTool to get roles assigned to a user.
Get Field ValueTool to get specific field value(s) from a document in ERPNext.
Get Workflow TransitionsTool to get available workflow transitions for a document.
Insert DocumentTool to insert a new document in ERPNext/Frappe using the client API.
Insert Multiple DocumentsTool to insert multiple documents at once into ERPNext/Frappe.
List DocTypesTool to get a list of all DocTypes available in the ERPNext system.
List ERPNext DocumentsTool to list documents of a specific DocType from ERPNext.
List EmployeesTool to retrieve a list of Employee records from ERPNext.
List ProjectsTool to retrieve a list of Project records from ERPNext.
List TimesheetsTool to get a list of Timesheet records from ERPNext.
List WebhooksTool to list webhook configurations in ERPNext.
Make Delivery NoteCreate a draft Delivery Note from an existing Sales Order in ERPNext.
Make Purchase OrderCreate a draft Purchase Order from an existing Material Request in ERPNext.
Make Sales InvoiceTool to create a Sales Invoice from an existing Sales Order in ERPNext.
Make Stock EntryTool to create a Stock Entry for material transfer, receipt, or issue in ERPNext.
Ping APITool to check if the ERPNext/Frappe API is reachable.
Rename DocumentTool to rename an ERPNext document by changing its unique ID/name.
Save Document with ActionTool to save, submit, cancel, or update a document in ERPNext.
Save DocumentTool to save an existing ERPNext/Frappe document with changes.
Global SearchTool to perform global text search across ERPNext documents.
Search Link Field DocumentsTool to search for documents to link in ERPNext/Frappe Link fields.
Set ValueTool to set a specific field value on a document in ERPNext.
Submit DocumentSubmit a draft document in ERPNext/Frappe to change its status from Draft to Submitted.
Update ERPNext documentTool to update a specific ERPNext document.

What is the Composio tool router, and how does it fit here?

What is Tool Router?

Composio's Tool Router helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Tool Router

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Tool Router works

The Tool Router follows a three-phase workflow:

  1. Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
  2. Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
  3. Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Prerequisites

Before you begin, make sure you have:
  • Python 3.8/Node 16 or higher installed
  • A Composio account with the API key
  • An OpenAI API key
  • A Erpnext account and project
  • Basic familiarity with async Python/Typescript

Getting API Keys for OpenAI, Composio, and Erpnext

OpenAI API key (OPENAI_API_KEY)
  • Go to the OpenAI dashboard
  • Create an API key if you don't have one
  • Assign it to OPENAI_API_KEY in .env
Composio API key and user ID
  • Log into the Composio dashboard
  • Copy your API key from Settings
    • Use this as COMPOSIO_API_KEY
  • Pick a stable user identifier (email or ID)
    • Use this as COMPOSIO_USER_ID

Installing dependencies

pip install composio-llamaindex llama-index llama-index-llms-openai llama-index-tools-mcp python-dotenv

Create a new Python project and install the necessary dependencies:

  • composio-llamaindex: Composio's LlamaIndex integration
  • llama-index: Core LlamaIndex framework
  • llama-index-llms-openai: OpenAI LLM integration
  • llama-index-tools-mcp: MCP client for LlamaIndex
  • python-dotenv: Environment variable management

Set environment variables

bash
OPENAI_API_KEY=your-openai-api-key
COMPOSIO_API_KEY=your-composio-api-key
COMPOSIO_USER_ID=your-user-id

Create a .env file in your project root:

These credentials will be used to:

  • Authenticate with OpenAI's GPT-5 model
  • Connect to Composio's Tool Router
  • Identify your Composio user session for Erpnext access

Import modules

import asyncio
import os
import dotenv

from composio import Composio
from composio_llamaindex import LlamaIndexProvider
from llama_index.core.agent.workflow import ReActAgent
from llama_index.core.workflow import Context
from llama_index.llms.openai import OpenAI
from llama_index.tools.mcp import BasicMCPClient, McpToolSpec

dotenv.load_dotenv()

Create a new file called erpnext_llamaindex_agent.py and import the required modules:

Key imports:

  • asyncio: For async/await support
  • Composio: Main client for Composio services
  • LlamaIndexProvider: Adapts Composio tools for LlamaIndex
  • ReActAgent: LlamaIndex's reasoning and action agent
  • BasicMCPClient: Connects to MCP endpoints
  • McpToolSpec: Converts MCP tools to LlamaIndex format

Load environment variables and initialize Composio

OPENAI_API_KEY = os.getenv("OPENAI_API_KEY")
COMPOSIO_API_KEY = os.getenv("COMPOSIO_API_KEY")
COMPOSIO_USER_ID = os.getenv("COMPOSIO_USER_ID")

if not OPENAI_API_KEY:
    raise ValueError("OPENAI_API_KEY is not set in the environment")
if not COMPOSIO_API_KEY:
    raise ValueError("COMPOSIO_API_KEY is not set in the environment")
if not COMPOSIO_USER_ID:
    raise ValueError("COMPOSIO_USER_ID is not set in the environment")

What's happening:

This ensures missing credentials cause early, clear errors before the agent attempts to initialise.

Create a Tool Router session and build the agent function

async def build_agent() -> ReActAgent:
    composio_client = Composio(
        api_key=COMPOSIO_API_KEY,
        provider=LlamaIndexProvider(),
    )

    session = composio_client.create(
        user_id=COMPOSIO_USER_ID,
        toolkits=["erpnext"],
    )

    mcp_url = session.mcp.url
    print(f"Composio MCP URL: {mcp_url}")

    mcp_client = BasicMCPClient(mcp_url, headers={"x-api-key": COMPOSIO_API_KEY})
    mcp_tool_spec = McpToolSpec(client=mcp_client)
    tools = await mcp_tool_spec.to_tool_list_async()

    llm = OpenAI(model="gpt-5")

    description = "An agent that uses Composio Tool Router MCP tools to perform Erpnext actions."
    system_prompt = """
    You are a helpful assistant connected to Composio Tool Router.
    Use the available tools to answer user queries and perform Erpnext actions.
    """
    return ReActAgent(tools=tools, llm=llm, description=description, system_prompt=system_prompt, verbose=True)

What's happening here:

  • We create a Composio client using your API key and configure it with the LlamaIndex provider
  • We then create a tool router MCP session for your user, specifying the toolkits we want to use (in this case, erpnext)
  • The session returns an MCP HTTP endpoint URL that acts as a gateway to all your configured tools
  • LlamaIndex will connect to this endpoint to dynamically discover and use the available Erpnext tools.
  • The MCP tools are mapped to LlamaIndex-compatible tools and plug them into the Agent.

Create an interactive chat loop

async def chat_loop(agent: ReActAgent) -> None:
    ctx = Context(agent)
    print("Type 'quit', 'exit', or Ctrl+C to stop.")

    while True:
        try:
            user_input = input("\nYou: ").strip()
        except (KeyboardInterrupt, EOFError):
            print("\nBye!")
            break

        if not user_input or user_input.lower() in {"quit", "exit"}:
            print("Bye!")
            break

        try:
            print("Agent: ", end="", flush=True)
            handler = agent.run(user_input, ctx=ctx)

            async for event in handler.stream_events():
                # Stream token-by-token from LLM responses
                if hasattr(event, "delta") and event.delta:
                    print(event.delta, end="", flush=True)
                # Show tool calls as they happen
                elif hasattr(event, "tool_name"):
                    print(f"\n[Using tool: {event.tool_name}]", flush=True)

            # Get final response
            response = await handler
            print()  # Newline after streaming
        except KeyboardInterrupt:
            print("\n[Interrupted]")
            continue
        except Exception as e:
            print(f"\nError: {e}")

What's happening here:

  • We're creating a direct terminal interface to chat with your Erpnext database
  • The LLM's responses are streamed to the CLI for faster interaction.
  • The agent uses context to maintain conversation history
  • You can type 'quit' or 'exit' to stop the chat loop gracefully
  • Agent responses and any errors are displayed in a clear, readable format

Define the main entry point

async def main() -> None:
    agent = await build_agent()
    await chat_loop(agent)

if __name__ == "__main__":
    # Handle Ctrl+C gracefully
    signal.signal(signal.SIGINT, lambda s, f: (print("\nBye!"), exit(0)))
    try:
        asyncio.run(main())
    except KeyboardInterrupt:
        print("\nBye!")

What's happening here:

  • We're orchestrating the entire application flow
  • The agent gets built with proper error handling
  • Then we kick off the interactive chat loop so you can start talking to Erpnext

Run the agent

npx ts-node llamaindex-agent.ts

When prompted, authenticate and authorise your agent with Erpnext, then start asking questions.

Complete Code

Here's the complete code to get you started with Erpnext and LlamaIndex:

import asyncio
import os
import signal
import dotenv

from composio import Composio
from composio_llamaindex import LlamaIndexProvider
from llama_index.core.agent.workflow import ReActAgent
from llama_index.core.workflow import Context
from llama_index.llms.openai import OpenAI
from llama_index.tools.mcp import BasicMCPClient, McpToolSpec

dotenv.load_dotenv()

OPENAI_API_KEY = os.getenv("OPENAI_API_KEY")
COMPOSIO_API_KEY = os.getenv("COMPOSIO_API_KEY")
COMPOSIO_USER_ID = os.getenv("COMPOSIO_USER_ID")

if not OPENAI_API_KEY:
    raise ValueError("OPENAI_API_KEY is not set")
if not COMPOSIO_API_KEY:
    raise ValueError("COMPOSIO_API_KEY is not set")
if not COMPOSIO_USER_ID:
    raise ValueError("COMPOSIO_USER_ID is not set")

async def build_agent() -> ReActAgent:
    composio_client = Composio(
        api_key=COMPOSIO_API_KEY,
        provider=LlamaIndexProvider(),
    )

    session = composio_client.create(
        user_id=COMPOSIO_USER_ID,
        toolkits=["erpnext"],
    )

    mcp_url = session.mcp.url
    print(f"Composio MCP URL: {mcp_url}")

    mcp_client = BasicMCPClient(mcp_url, headers={"x-api-key": COMPOSIO_API_KEY})
    mcp_tool_spec = McpToolSpec(client=mcp_client)
    tools = await mcp_tool_spec.to_tool_list_async()

    llm = OpenAI(model="gpt-5")
    description = "An agent that uses Composio Tool Router MCP tools to perform Erpnext actions."
    system_prompt = """
    You are a helpful assistant connected to Composio Tool Router.
    Use the available tools to answer user queries and perform Erpnext actions.
    """
    return ReActAgent(
        tools=tools,
        llm=llm,
        description=description,
        system_prompt=system_prompt,
        verbose=True,
    );

async def chat_loop(agent: ReActAgent) -> None:
    ctx = Context(agent)
    print("Type 'quit', 'exit', or Ctrl+C to stop.")

    while True:
        try:
            user_input = input("\nYou: ").strip()
        except (KeyboardInterrupt, EOFError):
            print("\nBye!")
            break

        if not user_input or user_input.lower() in {"quit", "exit"}:
            print("Bye!")
            break

        try:
            print("Agent: ", end="", flush=True)
            handler = agent.run(user_input, ctx=ctx)

            async for event in handler.stream_events():
                # Stream token-by-token from LLM responses
                if hasattr(event, "delta") and event.delta:
                    print(event.delta, end="", flush=True)
                # Show tool calls as they happen
                elif hasattr(event, "tool_name"):
                    print(f"\n[Using tool: {event.tool_name}]", flush=True)

            # Get final response
            response = await handler
            print()  # Newline after streaming
        except KeyboardInterrupt:
            print("\n[Interrupted]")
            continue
        except Exception as e:
            print(f"\nError: {e}")

async def main() -> None:
    agent = await build_agent()
    await chat_loop(agent)

if __name__ == "__main__":
    # Handle Ctrl+C gracefully
    signal.signal(signal.SIGINT, lambda s, f: (print("\nBye!"), exit(0)))
    try:
        asyncio.run(main())
    except KeyboardInterrupt:
        print("\nBye!")

Conclusion

You've successfully connected Erpnext to LlamaIndex through Composio's Tool Router MCP layer. Key takeaways:
  • Tool Router dynamically exposes Erpnext tools through an MCP endpoint
  • LlamaIndex's ReActAgent handles reasoning and orchestration; Composio handles integrations
  • The agent becomes more capable without increasing prompt size
  • Async Python provides clean, efficient execution of agent workflows
You can easily extend this to other toolkits like Gmail, Notion, Stripe, GitHub, and more by adding them to the toolkits parameter.

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FAQ

What are the differences in Tool Router MCP and Erpnext MCP?

With a standalone Erpnext MCP server, the agents and LLMs can only access a fixed set of Erpnext tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Erpnext and many other apps based on the task at hand, all through a single MCP endpoint.

Can I use Tool Router MCP with LlamaIndex?

Yes, you can. LlamaIndex fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Erpnext tools.

Can I manage the permissions and scopes for Erpnext while using Tool Router?

Yes, absolutely. You can configure which Erpnext scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

How safe is my data with Composio Tool Router?

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Erpnext data and credentials are handled as safely as possible.

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