You can change where Microsoft Dynamics AX places the log files by using the Microsoft Dynamics AX Configuration Utility.
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Open the Configuration Utility ( Start> Control Panel> Administrative Tools> Microsoft Dynamics AX Configuration Utility).
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Verify that the currently open configuration target and configuration are the ones you want to modify.
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On the Generaltab, in the Log directorybox, type the path in which you want to store the log files, and then click OK.