In this blog, we will provide more detail on the
b1-local-machine.xml file. This is used by SAP Business One Components like the Client application and DI API. We will explain more about this file and how is it used in troubleshooting connection issues.
b1-local-machine.xml is not supposed to be a configurable file. You should not change it unless you encounter an issue and are following SAP notes, or the advice of SAP Business One support. It is an internal file that is used to troubleshooting connection issues, hence you find the reference to this file in some troubleshooting notes such as:
SAP Note 2710077 - Troubleshooting DI API Connection Issues
This file can be found in the following directory:
C:\Program Files\SAP\SAP Business One DI API\Conf\b1-local-machine.xml
C:\Program Files\SAP\SAP Business One\Conf\b1-local-machine.xml
C:\Program Files (x86)\SAP\SAP Business One DI API\Conf\b1-local-machine.xml
Example section of b1-local-machine.xml:

B1-local-machine.xml properties
From the DI API perspective in the latest releases, the
SLDAddress value in
b1-local-machine.xml should be automatically maintained upon DI API installation.
The LicenseServer property is
Deprecated in DI API 9.2 PL05. The
SLDServer property should be used instead as documented in SDK help. The DI API will continue to support this property for backward compatibility. If there are older addons which uses
LicenseServer property, then they need to have the correct
LicenseServer values in
b1-local-machine.xml.
See our previous blog for more information on the change in 9.2 PL05:
Changes to the license server protocol in SAP Business One 9.2 PL05 | SAP Blogs
In general, you should consistently use the same
SLDAddress during installation/configuration of the client application, DI API, B1i, etc. Use the server name, or FQDN (Fully Qualified Domain Name) or IP across all components in the environment. Note that the Server names in HANA environments are case-sensitive.
Potential issues
During the setup of SAP Business One components, for example the client application, the value of the
LicenseServer sometimes defaults (during setup) to localmachine which is not correct and delays the startup/close of SAP Business One client.
If you can consistently reproduce this behavior, please report an incident to SAP.
Additional Information:
SAP Note 2352940 - Troubleshooting SLD and License Server Issues
SAP Note 868000 - License server address requested during each log on
Support Spotlight Series
We hope this read has been informative and beneficial. For more blog posts and tips from the SAP Business One Support team, please visit our space on the communities:
https://blogs.sap.com/tag/b1-support-spotlight/
For questions about SAP Business One,
please submit your question here.