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This tests isolated pieces of functionality, for example, creation and save of a sales order. The test is done in the development by a configuration specialist and confirms that the sales order can be saved using the SAP organization elements (sales organization, company code, credit control area, etc.) along with the customer master data set up, partner functions, material master data, etc. It establishes a baseline of SAP functionality. For ABAP development, for example, unit testing shows that a report can be created from developer generated data. Assistance in data generation may come from a functional consultant.
representative real world data. In addition the testing shows interface triggers, reports, workflow are working.
available. As part of the project user involvement along the way should have been providing feedback to ensure the design met the requirements, so there should not be any big surprises. Again this is activity that usually occurs in a QA environment with realistic data and the inclusion of end user security and authorizations.
conversion, load the results into SAP (and any other systems) and fully validate the results, including a user sign-off. Most projects have several dry run conversions which progress from an exercise in capturing all the steps, checkpoints and sign-offs in data conversion to a timed exercise to ensure everything can be accomplished in the time window for go-live. Once it becomes a timed event a dry run data conversion readily rolls into a cut over test, where it is one component of an overall cut over activity sequence: a cut over test usually ensures that all the necessary tasks, e.g. importing transports; manual configuration; extracting, converting and loading data; unlocking user IDs; starting up periodic processing for interfaces, etc. are all identified and can be executed in the go-live time window.
Application Testing
This term can be construed as so broad it has no meaning as an application can mean a lot of things. I have only ever heard it as generic blanket term for another kind of testing, e.g. SAP application testing, so it needs to be refined and given context to be of use.
Conclusion
As mentioned earlier I dont claim to have perfect definitions for all types of testing, but I believe it is worthwhile having good definitions that are commonly understood and communicated across your project.