Can't SMS inbound or outbound.
Configuration Manager User Extensions with SMS (X2 license and above, Lobby and Basic do not have SMS)
Only local numbers assigned to user licenses (X2 and above) can send/receive SMS. Phone numbers assigned to Service extensions (i.e., Auto Attendant, Cal Queue, Ring Group, etc) cannot send/receive SMS.
A local number needs to be assigned as the first number chosen in Configuration Manager, and then you can assign the Toll Free number.
If you notice the Toll Free number is assigned first simply copy it to a note pad, delete the toll free number and save, then add it back and save.
If removing the toll-free number, and add it back, it still goes in front of the extension phone number, then remove the extension number and save, then add it back. Log into VOD to ensure that the extension phone number is the main number and not the toll-free number.
If the Toll Free number is the first number assigned, SMS will not work.