Difference between Customizing and Configuration in SAP

Customizing and Configuration are two important concepts in SAP that often create confusion. Here is the difference:

• Customizing: Customizing refers to the process of tailoring SAP software to meet specific business requirements. This involves making changes to existing functionalities or adding new functionalities through configuration settings, without changing the actual source code. Customizing is typically done by SAP consultants or system administrators.
• Configuration: Configuration, on the other hand, involves setting parameters and options within SAP to define the behavior of the system. It is a part of customizing and is used to determine how the system behaves based on specific requirements. Configuration is usually done during the initial implementation of SAP and can also be adjusted as needed during the system's lifecycle.

Understanding the difference between Customizing and Configuration is crucial for effectively managing and optimizing SAP systems.