This can happen if your report has a custom table, view or anything not in the Sage300 data dictionary. In Crystal designer you can update the crystal report to use integrated security and create a sql user account for the windows username. The user workstation will also need a dsn setup to VFLDAT connecting using windows authentication. The alternative is to instead of using a view or custom table in the reports design use a command that explicitly calls the view like "select * from ViewName". 

what if I use a stored procedure to display data in the report?

Add an unlinked CSCOM to the report.