3149529 - 401 error with Cloud Integration receiver adapter going through Cloud connector to on-premise system using basic auth

Connecting an HTTP-based receiver adapter (IDoc, XI, SOAP, HTTP, etc.) from Cloud Integration to an On-Premise system using Basic Authentication returns HTTP 401 error in Runtime.

• Cloud Connector is used
• On-Premise system is connected from Cloud Connector using HTTPS protocol
• You are certain the credentials are correct and valid, and user is not being locked.
• Typical error message in Cloud Integration:
  HTTP response '401: Unauthorized
• In the ICM Level 3 trace, the request is clearly seen coming into the system and the request sent to the application server "IcmCreateDpRequest: Send request to AppServer" after this a 401 is returned from the Application server.
• Issue is consistently reproducible

Image/data in this KBA is from SAP internal systems, sample data, or demo systems. Any resemblance to real data is purely coincidental.

• Cloud Integration
• SAP Integration Suite
• SAP Business Technology Platform
• SAP NetWeaver

401, unauthorized, receiver, adapter, channel, IDoc, XI, SOAP, HTTP, on-premise, cloud connector, client certificate, system certificate, authentication, logon not working, SICF, logon order, Standard Logon Order , KBA , LOD-HCI-PI-RT , Integration Runtime , BC-SEC-LGN , Authentication , BC-MID-SCC , SAP Cloud Connector On-Demand/On-Premise Connectivity , LOD-HCI-PI-CON-HTP , HTTP Adapter , LOD-HCI-PI-CON-SOAP , SOAP Adapter , Problem