Creating RFC destination :-1) Transaction code for creating RFC destination is SM59

2) With the T code(SM59) you will enter the screen where you can create RFC destination. In this screen you have an option called create new connection.

3)Once you enter new connection screen, there you have options called RFC destination where you have to address the destination system, connection Type, description. And in the technical settings tab, you have to enter the Target Host details and the IP address.

4) Now go to Logon & Security tab and enter Logon Procedure details Language, Client, User and PW Status.Before doing the connection test save everything by clicking save option on the top of the screen.5) After saving the data, Click on the connection test tab, which will give you the details of the connection test passed or failed.

6) Now go back one step and do the Remote Logon. By clicking on the Start SAP Easy Access you can connect the backend ECC System.

6) If you see the below screen with client details of you backend system (in this case) says that the RFC connection is successfully completed.

Creating Logical system:-1) Transaction Code for defining logical systems and assigning logical system is 'SALE'or choose SAP Implementation Guide SAP Supplier Relationship Management SRM Server Technical Basic Settings ALE Settings Distribution (ALE) Basic Settings Logical Systems

2) click on Define Logical System

3) Once you enter the below screen, click on New Entries

4) After entering New Entries screen. Give the Logical system information and description in their respective fields as shown in the screen.

Assign Logical Systems:-Once we define the Logical system, we have to assign it. Below screen shots explain how to assign the Logical Systems.Choose Technical Basic Settings ALE Settings Distribution (ALE) Basic Settings Logical Systems Assign Logical System to Client

Click on Assign Logical System to client and assign the logical system name to which you defined in the previous step. In my example I defined SRM_00_400 and so I am assigning it in the following step..

Identify the client before you defined and double click on it and you will enter the following screen where you can assign it and then do save.

Therefore in the above steps we Defined Logical System and Assigned it to respective Client.