Error While sending a mail from Email subscription in SSRS - reporting-services

Question

I am getting below error while sending a mail from Email subscription in SSRS.
Below is the Configuration section:
<RSEmailDPConfiguration>
<SMTPServer>mysmtpserver addres</SMTPServer>
<SMTPServerPort>
</SMTPServerPort>
<SMTPAccountName>
</SMTPAccountName>
<SMTPConnectionTimeout>
</SMTPConnectionTimeout>
<SMTPServerPickupDirectory>
</SMTPServerPickupDirectory>
<SMTPUseSSL>
</SMTPUseSSL>
<SendUsing>2</SendUsing>
<SMTPAuthenticate>2
</SMTPAuthenticate>
<From>myid#domain.com</From>
<EmbeddedRenderFormats>
<RenderingExtension>MHTML</RenderingExtension>
</EmbeddedRenderFormats>
<PrivilegedUserRenderFormats>
</PrivilegedUserRenderFormats>
<ExcludedRenderFormats>
<RenderingExtension>HTMLOWC</RenderingExtension>
<RenderingExtension>NULL</RenderingExtension>
<RenderingExtension>RGDI</RenderingExtension>
</ExcludedRenderFormats>
<SendEmailToUserAlias>True</SendEmailToUserAlias>
<DefaultHostName>
</DefaultHostName>
<PermittedHosts>
</PermittedHosts>
</RSEmailDPConfiguration>
Error:
notification!WindowsService_0!1858!08/20/2013-05:48:02:: i INFO: Handling subscription f78a80f1-dd72-4215-b86a-96fa7391cfc0 to report ReportMenu, owner: mydomain\myid, delivery extension: Report Server Email.
library!WindowsService_0!1858!08/20/2013-05:48:02:: i INFO: RenderForNewSession('/ReportProject/ReportMenu')
library!WindowsService_0!1858!08/20/2013-05:48:04:: i INFO: Initializing EnableExecutionLogging to 'True' as specified in Server system properties.
emailextension!WindowsService_0!1858!08/20/2013-05:48:04:: e ERROR: Error sending email. Exception: System.Net.Mail.SmtpException: Mailbox unavailable. The server response was: 5.7.1 Client does not have permissions to send as this sender
at System.Net.Mail.DataStopCommand.CheckResponse(SmtpStatusCode statusCode, String serverResponse)
at System.Net.Mail.SmtpConnection.OnClose(Object sender, EventArgs args)
at System.Net.ClosableStream.Close()
at System.Net.Mail.MailWriter.Close()
at System.Net.Mail.SmtpClient.Send(MailMessage message)
at Microsoft.ReportingServices.EmailDeliveryProvider.EmailProvider.Deliver(Notification notification)
notification!WindowsService_0!1858!08/20/2013-05:48:04:: i INFO: Notification f06badda-98db-4aba-8a1f-26646430479b completed. Success: True, Status: Failure sending mail: Mailbox unavailable. The server response was: 5.7.1 Client does not have permissions to send as this sender, DeliveryExtension: Report Server Email, Report: ReportMenu, Attempt 0
Could someone help on this ?

Answer 1

As per the exception, the issue is coming from the SMTP server:
Status: Failure sending mail: Mailbox unavailable. The server response
was: 5.7.1 Client does not have permissions to send as this sender
Because you have SMTPAuthenticate set to 2 in the config, the SSRS service user will try and authenticate to the SMTP server. See Configure a Report Server for E-Mail Delivery for more details.
You need to resolve this issue - since SSRS is running under NT Service\ReportServer and trying to send the mail as <From>myid#domain.com</From> the SMTP server will not allow this, and hence the error.
As a test you can change the SSRS service user to myid#domain.com as a check to confirm this is the issue.
If so, you should investigate getting a domain user set up with a mailbox and running the SSRS service under that user.
Your other option is removing the Authentication option from the config (i.e. setting SMTPAuthenticate to 0) and allowing anonymous authentication to the SMTP server, though this might not be allowed in your environment.