In SharePoint mode a report server is installed as part of a SharePoint server farm. The report server processing, rendering, and management features are represented by a SharePoint application server running the Reporting Services SharePoint shared service and one or more Reporting Services service applications. A SharePoint site provides the front-end access to report server content and operations.
For more details read the MSDN Article.
Procedure for installing SQL Server Reporting Services 2012 in SharePoint Integrated Mode
- Run the SQL Server Installer
- Click on the installation, and then click on "New SQL Server Stand-alone Installation or add feature to an existing installation".
- Click "OK"
- Click "Next"
- Select "Perform a New installation"
- If you don't have a key then select "Evaluation", it doesn't matter because the Reporting Services Add-in is a free feature. And click "Next".
- Accept the license and click "Next".
- Select "SQL Server Feature Installation"
- Select "Reporting Service - SharePoint" and "Reporting Service Add-in for SharePoint Products" then click "Next".
- Click "Next" on a couple more screens until it reaches the Ready To Install screen.
- Verify the feature and click on the "Install" button of the Ready to Install Screen.
- Verify the Completion report and restart the Server.
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