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Reporting Services within the 2012 version is a SharePoint Service Application. So here's what you don't want to do (!): don't go into "General Application Settings" and configure SSRS here. This is the old version. You can still use this version if you want, but since we installed the 2012 version, that's the version we're going to use.

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I'll go into Application Management, then Service Applications, and Manage Service Applications. In this case the Reporting Services Service App isn't here. There isn't an equivalent wizard to "do it all for you" like there is with PowerPivot.

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But it's not hard to do, so we'll go ahead and add it. I'll click "SQL Server Reporting Services Service Application" from the "New" menu. And this form is where we'll give a name to the Reporting Services application.

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I'm only going to install one, so I'll just call it "ReportingServices".

I could use an existing application pool. This would have somewhat of an advantage of saving some memory. But I'm going to add more BI components, so I'm going to initialize a new App Pool, which I'll call BIPool. When I install PerformancePoint and other things, I'll hang them on that same application pool.

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The service account I'll use is the same one I've been using. In production you probably would have more options here, and would isolate applications on different service accounts (not just on one).

The database server I'm going to create the service database in is the one on this local machine, which is called "SharePoint". The instance name is "POWERPIVOT".

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I'm going to rename the database to remove the GUID and call it ReportingServicesServiceApp. You can call your database whatever you like!

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The authentication is going to use my authentication to provision the database, and that's fine.

Don't forget to associate the service with the default web application (otherwise you’ll be coming back to do that manually).

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Click OK, which will create the service application. Once the service app is created it'll give a success dialog. I do want to provision subscriptions and alerts, which will allow me to create subscriptions. This is a pretty easy step--but don't forget to do it.

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Oops, Agent isn't running, so let's get that started. Connect to the SQL engine, right-click on SQL Server Agent and click Start on the menu.

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Now Agent is running. I'll just enter my username and password to configure the agent subscription schedule features (press OK). The lack of an error message tells me it worked.

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Now I'll double-check that the service is running on the server. It is started. If I visit the Service Application list I can see my service apps are here. I'll go into the SSRS settings to specify an Execution account. Again I'll use the single service account I created in AD. Again, in a production environment you shouldn't do this--you should use an unprivileged account for the execution account.

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This is the account that will be used when we don't have authentication available to send to the back- end database, so this will be important later on.

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That's it! We have our Reporting Services (SharePoint Mode) installed, and the basic configuration is complete.