Visual Studio 2012 report server could not be found error

• Open the Reporting Services Configuration manager by going to All Programs> Microsoft SQL Server 2012> Configuration Tools> Reporting Services Configuration Manager
• On the left hand side select Web Service URL
• In the Report Server Web Service Virtual Directory select Advanced
• In the Multiple HTTP Identities for the Report Server Web Service select Add
• Select the Host Header Name radio button and add the name of your server and click OK
• In Visual Studio 2012 make sure the Target Server URL matches the URL in the Report Server Web Service URLs section http://YOURSERVER/ReportServer

Many thanks to leosinclair http://www.sqlservercentral.com/Forums/Topic1355952-391-1.aspx#top