A few days ago, I had to modify reports in standard Dynamics Ax 2012 R3. Report successfully opened in Visual studio 2010, but when I tried to modify the report design, visual studio throw following error.
Unable to preview the report, install the Business Intelligence. Development Studio feature.
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For this I had to install the Business Intelligence Development Studio from SQL Sever 2008 R2 setup.
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After Installment this error resolved.
Reference: http://msdynamicsaxtips.blogspot.com/2015/02/unable-to-preview-report-install.html
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