While upgrading a client to Management Reporter (MR) 2012, the database upgrade failed due to a SQL timeout exception. The timeout setting was originally set to a time that could not do all conversions, causing the configuration to fail.
1. Find the SQL timeout value setting in the MRConfigurationConsole file. This is in the Management Reporter folder (C:\Program Files\Microsoft Dynamics ERP\Management Reporter\2.1\Server\Console).
2. Change the value to a higher time for the conversion to complete. For us it was changing the 300 to 300000.
3. Restart the Configuration Console for changes to take effect. Configuration was successful.