Manage Logical Landscape Information 
Based on the technical landscape information provided by automatic data suppliers, you create the logical landscape description in SAP Solution Manager. As of SAP Solution Manager 7.1 SP5, landscape information for product systems is maintained in the Landscape Management Database (LMDB). It was previously maintained in the Solution Manager System Landscape (transaction SMSY). Logical Components are still maintained in SMSY.
For detailed descriptions of how to manage logical landscape information in SAP Solution Manager, see the following documents:
Create Product System Information
Technical system information is provided automatically by the System Landscape Directory (SLD), but product system descriptions must be created manually.
Example: Product System
The graphic above shows an example for an SAP ERP product system comprising two technical systems (ERP and EP1). Two product versions are installed: the stand-alone product version SAP ERP 6.0 and the dependent add-on product version Enhancement Package (EHP) 5 for SAP ERP 6.0. The product instances SAP ECC Server and Central Applications of the product versions are installed on the Application Server (AS) ABAP technical system, the Self-Services are installed on the AS Java technical system.
Logical landscape information comprises definitions of different logically dependent entities:
Products and Product Versions
SAP products are the applications that SAP delivers. A product groups a set of functions to solve a business need. The SAP product model (SAP software catalog) describes all SAP products. This model defines the possible product structure. A product consists of one or more product versions.
Examples of products are SAP ERP, SAP NetWeaver, and SAP Solution Manager.
A product version is a release of a product. It bundles the product instances and related software component versions available at the same time for a function. The bundle considers, for example, technical dependencies. Product versions typically have a name starting with “SAP …” and have characteristics like their application function and a maintenance period.
Example: SAP ERP 6.0 is a product version of the product SAP ERP.
Product Instances
A product instance is part of exactly one product version. A product instances bundles a set of software components that have to be installed as a unit. The individual software components cannot be distributed among different technical systems. The set must be installed and updated together, to reach a consistent state. (Note: In contrast to an update, patches can be applied to individual software components.) The product instances define the maximally allowed software component distribution of a product version.
A product instance can contain other product instances. Product instances can also be re-used across products and may contain one or more software components. One product instance (and the software component versions it contains) is always installed on one technical system, so it cannot be distributed across technical systems.
Software Components and Software Component Versions
Software components are always described in versions. Software components versions are the smallest entity that can be installed on a technical system. A software component version can be part of several product instances. It can require other software component versions to be installed as well. There are smaller shippable software entities than software component versions like support packages, patches, and notes. They always refer to the software component version that they change.
Product Systems
Product systems bundle product instances of one or several technical systems. They are needed for maintenance and planning. One technical system can be in multiple product systems (Hub scenario), so dependencies are defined between product systems.
Logical Components
Logical components describe a function, and group the systems providing this functionality in roles. When business processes planners and software maintenance staff talk about systems, they are typically not concerned with the technical details and overall layout of the system implementation. The systems may not even physically exist when the logical component is created.
For more information, Edit Logical Components.