When using a local Active Directory connected to Office365 via Azure Active Directory and Azure AD Connect you will run into issues controlling Exchange features via Active Directory. Here is a quick guide how to manage it anyway.
When you connect your local Active Directory via Azure AD connect to sync everything with Office365 every synced account has to be managed locally. You can’t create a local user, distribution list or contact and then change properties like who can send e-mails to it in the Office365 web ui.
At the same time there is no way to set these properties locally since properties on your Active Directory objects are missing. Fields like authOrig that controls who can send e-mails to a distribution group just isn’t their.Continue reading