Purpose
The SAP profile contains R/3 setup information for an R/3 instance.
The R/3 System can consist of one or more instances. For example, an R/3 System with a single instance containing only a central server, or a client/server system containing two or more separate instances.

Individual setup parameters can be customized to the requirements of each instance.
These individual parameters allow you to configure:
See also:
What is a Profile? Profile Types Maintaining Profiles