DocuWare does not transfer passwords from AD. In fact, DocuWare is not interested in the users Windows password. When you synchronize users with AD you specify that it creates a network Id. This is in the Windows 2000 format: domain_name\User name.

You can also, speficy that DocuWare creates a fixed password for each user for use with the DocuWare sign on, or an arbitrary 32 characters password. Most user select and specify a fixed password for all uers initially.
Once you have sunchronized, and created the network Id in the users record, then you can use Windows Authentication (single sign on) to log in to DocuWare in On-Premise systems.
http://help.docuware.com/en/#b57870t21365n78036

Phil Robson
Senior Director Support Americas