Quest don't have an actual KB article for that, so let me just clarify something here. The KSMA (K1000) is going to see your "hybrid" mail server as two independent servers one is O365 and the other one is going to be your Local Exchange 2013 (also known as "relay"), so to put it simple just do the following:
https://support.quest.com/kb/111729 (if using Quest KBs)
In some special situation this is needed
*NOTE: if you are using O365, every single queue and the network settings needs independent email account!!!!
and that's it...
Questions? let me know