Scenario–  Here is a simple SCSM 2012 R2 in place upgrade.  Very simple and straight forward and by posting this allows me to have screen shots to reference back to when preparing documentation for customers 🙂

Environment– Server 2012 nonR2, Service Manager 2012 Sp1 UR4 single Management Server, Remote SQL 2012 Sp1, VM

Guide

Mount the media and Run Setup as Administrator

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Select “Upgrade”

Figure 2

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Remember the recommended sequence when upgrading System Center products.  Also if this is a full Service Manager environment (Management servers, SMPortal) you have to upgrade the Management Server that runs the Workflows first.

I always upgrade to SCSM UR4 before going to R2*

Orchestrator
Service Manager UR4*
Data Protection Manager (DPM)
Operations Manager
Configuration Manager
Virtual Machine Manager
App Controller

http://technet.microsoft.com/library/hh519584.aspx

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This is a test VM environment with below spec’s, so we will be ok to continue.

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If upgrading, your configuration should auto populate-

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Success! It even upgraded the locally installed console to R2.

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Will update with SMPortal soooon.