(I) Creating Receive Connector in Exchange 2013
1. Go to exchange server and open EAC. Select Mail Flow from the left, choose receive connector and click + click as show below
2. On the Receive Connector page, enter new name for the connector and keep the rest default
3. Under Network Binding, click on pencil to edit
4. Enter the IP of SharePoint Server and click on Save
5.Click on Finish
6. From the EAC, edit the newly created receive connector, go to Security and check Anonymous users under Permission groups and click Save
(II) Enable Outgoing mail in Document Library
1. Go to SharePoint Server, Open SharePoint 2013 Central Administration and. Under System Systems, click on Configure outgoing e-email settings
2.On the Outgoing E-Mail Settings, Enter Outbound SMTP server which is your exchange server FQDN, From Address, reply address and click on OK.
3. Now it is time to login the SharePoint Site and go to the document library. Click the library where you want to setup the alert. we will see Alert me icon as we have setup the outgoing email . Click on the Alert Me and choose Set alert on this library
4. On the New Alert Page, make the selection as per your needs. I kept all as default and click OK.
Once the above is setup properly, you should receive an email confirming the setup.