If you’re currently seeing users get the ‘Login Failed’ message when prompted with the Exchange Log On window when emailing in Dynamics GP, the issue is most likely related to Exchange Online disabling basic authentication on tenants, which started approximately mid-February 2022, in preparation for permanently disabling it on all tenants come October 2022.
Also, Exchange Online is making these changes not on the policy level but behind the scenes, this is why it is possible to run a diagnostic against your Exchange Online and have it show basic authentication is still enabled, when it actually is not behind the scenes. This makes troubleshooting basic authentication near impossible for us right now.
Because Exchange email requires basic authentication to be enabled on your Exchange Online/O365 tenant to function, this is what causes the ‘Login Failed’ messages.
When this issue is seen, the only options the customer would have are the following:
1. Until they’re able to upgrade to Dynamics GP 18.4 and use the modern authentication functionality, they can request the basic authentication protocol re-enabled on the Exchange Online accounts via the blog mentioned:
Basic Authentication and Exchange Online – June 2021 Update - Microsoft Tech Community
techcommunity.microsoft.com/.../2454827
Then, in this blog, there are steps you can use to modify the Dynamics.exe.config file for Microsoft Dynamics GP, to allow it to use TLS 1.2 instead of earlier versions of the TLS protocol:
Emails intermittent failing when sending out of Dynamics GP (Not workflow emails) - Microsoft Dynamics GP Community
community.dynamics.com/.../emails-intermittent-failing-when-sending-out-of-dynamics-gp-not-workflow-emails
2. Upgrade to Dynamics GP 18.4 and use the modern authentication functionality that we put in the newer versions so that Exchange emailing uses modern authentication and not basic authentication, thus it’ll work without either of the work-arounds mentioned above, and will continue to work after October 2022, when basic authentication is permanently disabled on Exchange Online/O365.
docs.microsoft.com/.../multi-factor-authentication
community.dynamics.com/.../microsoft-dynamics-gp-fall-2020---multi-factor-authentication
By Oct 2022, you must be on GP 18.3 or later, using Azure AD modern authentication, in order to email per Exchange, otherwise MAPI would be the only other option for emailing in Dynamics GP, which requires a 32-bit email application.
When basic authentication is disabled on a tenant, it can be anywhere from 24-48 hours before it is enabled again, if at all.
The disabling is supposed to be on the tenants that don't appear to be using it, but based on case volume we've seen, it suggests that isn't always the case.
Let me know if you have any questions on anything mentioned here.
Thanks,
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