A working SharePoint Subscription and Workplace should be created for 2007 (BPOS) or 2010 (O365). Please follow the below steps in the CRM application to complete the integation steps with SharePoint
1. In Microsoft Dynamics CRM, click on Settings in the navigation pane
2. Click on Document Managment
3. Click On New
4. Click on Sharepoint Sites
5. Enter the Display Name and the Description
6. Under URL Options select Absoloute URL
7. Enter the Absolute URL (Example: http://orgname.sharepoint.microsoftonline.com)
8. Click on Save & Close
9. Under Document Managment, click on SharePoint Document Locations
10. Enter the Display name and description of the the location
11. Under the URL Options select Absolute URL
12. Enter the Absolute URL. (This has to be the location of the folder in your SharePoint site, if you are not sure navigate to your SharePoint site, click on the folder, and copy the location in the address bar)
13. Click on Save & Close
14. Under Document Managment click on Document Managment Settings
15. Select the entity that would use SharePoint to store docs. (Keep the URL Box Empty)