The SQL Server Reporting Services account is a local user and is not supported
If you get an error when trying to install Microsoft Dynamics CRM Reporting Extensions (SetupSrsDataConnector). You have to change service account on Reporting Services Configuration Manager.
- Open the Reporting Services Configuration Manager
- Change the Service Account to Network Service.
- While changing account it will ask you “Backup Encryption Key”
- Type your pass and locate file.
- Then you can continue to setup Reporting Extensions.
More info :
https://msdn.microsoft.com/en-us/library/ms160340.aspx
https://mscrmonline.wordpress.com/2012/07/31/microsoft-crm-2011-and-sql-server-2012-support/