CRM will require a mail relay to send out e-mails.  It is possible to do this using Office 365; I think all the relevant information is in this article:

https://docs.microsoft.com/en-us/exchange/mail-flow-best-practices/how-to-set-up-a-multifunction-device-or-application-to-send-email-using-microsoft-365-or-office-365

The other route with Office365, is create the email account (e.g. CRM@) and then for every user who is going to use CRM, add that account to their mailbox as a 'Send As' permission. (e.g. CRM@ can Send As Joe@) 

(I also then use this email account for Exchange Integration purposes as well)

I've seen this discussed numerous times. However, doing that allows the CRM @ user to send as someone else. But what configuration settings in CRM do you need to set, to allow the user to user the CRM email editor? CRM needs to know how to send it to the Exchange server.

I've seen this discussed numerous times. However, doing that allows the CRM @ user to send as someone else. But what configuration settings in CRM do you need to set, to allow the user to user the CRM email editor? CRM needs to know how to send it to the Exchange server.

I'm glad I saw this post.  My clients are beginning to use 365 for email and want to use CRM to send emails.  Like you, I'm a little confused and was hoping this thread would help.  Post back when you get it working.

In CRM you would put (and you're using Internal Smtp not CDONTS) 

Server: smtp.office365.com

Port: 587

Username/password: the new email account e.g. [email protected]

Tick the TLS box

And yes adding CRM@ to the user's email account as 'Send As' permission will allow CRM@ to send as someone else, that's the whole point. 

There is no setting needed for users to access the email editor, they just go to the new menu and and select 'new email'

Only users with a valid email address on their user account (and has had the CRM@ added as send as to their mailbox) will be able to send emails out of CRM

Thanks for the reply Matthew. 

Correct me if I am wrong.  Your method is the opposite of using the "Impersonation" where you are adding CRM@ to each user.  This would be good for smaller organizations it seems.  Where as, using the "Impersonation" method, it would be easier to add an "Impersonation" role to one account that all users would use.

Would that be a fair statement??

We use this method on all our sites and never come across an issue with it. Be it 5, 30 or 60 users.

Impersonation role? Do you mean the 'Application Impersonation' role? This is needed for the Exchange Integration set up. Never used it for sending emails out of CRM and wouldn't know how to configure it to work like that (Even when the AI role has been applied to the crm@ it won't send emails as another user) unless I'm missing what your asking

Yes, I was talking about the role.  The client was not looking for integration at the moment so you have cleared up my misconceptions.  Thanks.

Not a problem, the Application Impersonation role is used with the Exchange Integration which is used only for server-to-server sync of diaries, tasks and contacts. Nothing to do with emails

With it configured users can in stall the Outlook Lite plugin (though I think that might have changed recently). To file emails from Outlook into CRM

Without it configured, users have to use the Outlook Classic plugin which handles the filing of emails and a client-to-client sync of dairies, tasks and contacts. So limited to 32Bit Office. 

So that I have this straight, the CRM@ is the SMTP user that is defined in the SageCRM email configuration.  With the "Send as" permission, we add CRM@ to the USER@ email.  So when emails are sent by USER@, are the emails received showing from CRM@ or the USER@ for the company?

Yes, CRM@ is the user that is configured in the SMTP. And then on the user@ mailbox in Exchange the crm@ is added to the Send As permission 

When CRM sends emails out, it only uses the one email account. But any email sent will look like it has come from the user@. So if the customer replies to the email it will return back to the user's Outlook Inbox as normal.

Note, an emails sent won't appear in the user's Sent items in Outlook (it will only appear automatically on the communications tab of the appropriate record(s), so if Sent from with an opportunity the email will appear on the company/person/opportunity records) if they want a copy in Outlook they should BCC themselves 

Again, thank you for the clarification.