Business Add-In

Definition of Business Add-In

A Business Add-In (BAdI) is a customizable technology feature in SAP software that enables developers to build enhancements to existing SAP applications without altering the original code. It serves as a mechanism for adding custom functions, expanding business processes, or tailoring an application to company-specific requirements. BAdIs offer flexibility and seamless integration, as they can be easily activated or deactivated without affecting the core functionality of the software.


The phonetic pronunciation of the keyword “Business Add-In” is:ˈbɪznɪs ˈæd-ɪn

Key Takeaways

  1. Business Add-Ins (BAdIs) are a SAP enhancement technique that allows for the customization and modification of SAP standard code without directly modifying the core system.
  2. BAdIs provide a structured way to implement custom business logic by offering various enhancement options that are easily activated or deactivated by switch frameworks, thus maintaining system integrity and minimizing upgrade issues.
  3. Business Add-Ins are based on the concept of object-oriented programming and leverage the benefits of ABAP Objects such as reusability, ease of maintenance, and better performance while ensuring seamless integration with SAP standard applications.

Importance of Business Add-In

The technology term “Business Add-In” (BADI) is essential because it enables the customization and extension of existing software functionalities in enterprise systems, particularly SAP applications, without modifying the core system.

BADIs are an integral aspect of SAP’s enhancement framework, allowing clients to introduce custom business logic and accommodate specific business requirements seamlessly.

By utilizing BADIs, organizations can efficiently implement new functionality and adapt to changing business environments, improving the flexibility and agility of their enterprise solutions.

Moreover, as these customizations are separated from the core code, they can be easily managed, upgraded, and maintained without affecting the system’s stability or future software updates.


Business Add-Ins, also known as BAdIs, serve as an essential component for adapting and enhancing standard software applications, specifically in the SAP software realm. The primary purpose of BAdIs is to enable businesses and software developers to modify and extend the functionality of standard SAP applications, without directly altering the original source code. BAdIs provide a relatively clean and organized approach to customization, allowing developers to add or modify specific features or functionalities in pre-defined extension points provided by the standard applications.

This enhances the overall flexibility and adaptability of the software while ensuring minimal impact during updates or software upgrades. Business Add-Ins can significantly improve the efficiency of business processes for organizations by allowing them to fine-tune the software to best fit their unique requirements. By leveraging BAdIs, businesses can optimize their use of SAP software and enhance overall system performance.

This results in streamlined operations, increased productivity, and a significant reduction in the time and effort associated with manual customization. Additionally, BAdIs offer better maintainability of custom enhancements since they are decoupled from the core application; subsequent updates or upgrades in the SAP application seldom impact the custom enhancements implemented using BAdIs. In summary, Business Add-Ins serve as a flexible and effective method for organizations to extend and adapt standard software applications to better suit their individual needs.

Examples of Business Add-In

Business Add-In (BAdI) is a technology that allows developers to customize or extend the functionality of standard SAP applications without directly modifying the core SAP system. BAdI offers a more flexible and modular approach to implementing additional functionality within SAP applications. Here are three real-world examples of how BAdI technology is utilized in various industries:

Enhancing Financial Reporting in the Banking Sector:In the banking and financial industry, financial institutions often need to comply with various regulatory reporting requirements such as generating reports based on a specific set of criteria. By using BAdI, banks can customize and enhance standard reporting functionality in their SAP systems to meet these specific requirements without affecting the core functionality.For example, a bank may need to generate a report quarterly to provide a detailed analysis of high-risk loans. With the help of BAdI, they can easily modify the existing reporting functionality to include additional data points that are relevant to their risk management strategy.

Streamlining HR Processes in Manufacturing Industry:The Human Resources (HR) processes in the manufacturing industry often involve complex employee scheduling, time tracking, and payroll calculation. BAdI can be used to extend the standard SAP HR module to accommodate unique requirements of manufacturing organizations while streamlining their process.For instance, a manufacturing company may need to integrate a third-party time and attendance system into their SAP system for tracking employees’ working hours efficiently. By implementing a BAdI, the manufacturer can enhance the standard SAP HR module to incorporate data from the external system seamlessly.

Customizing Material Requirements Planning (MRP) in Retail:In the retail industry, accurate material requirement planning is essential to ensure the right products are in stock and available for customers. Retail organizations often face challenges meeting diverse supply chain and customer demands; hence, customization of their MRP functionality becomes necessary.A retail company may require a more specific MRP system that supports their unique business model by considering seasonality, regional preferences, and other factors. With BAdI, customization of standard MRP functionality in the SAP system can be achieved, enabling better inventory management and more efficient product delivery.These examples demonstrate the versatility and benefits of utilizing BAdI to enhance and customize SAP applications to meet an organization’s specific needs across different industries while maintaining the core SAP functionality intact.

Business Add-In FAQ

What is a Business Add-In?

A Business Add-In (BAdI) is an enhancement concept in SAP systems that allows developers to add their own code functionality to SAP standard code without making any modifications. BAdIs follow the Object-Oriented approach and leverage the concept of interfaces to enable a seamless integration of custom code with SAP standard code.

How do Business Add-Ins differ from User Exits?

Business Add-Ins (BAdIs) and User Exits are both enhancement techniques in SAP, but they have several differences. BAdIs follow the Object-Oriented approach, while User Exits follow the procedural approach. BAdIs enable multiple implementations whereas User Exits are based on a single implementation. BAdIs offer more flexibility, reusability, and maintainability compared to User Exits.

Where can I find Business Add-Ins in an SAP system?

To find available Business Add-Ins (BAdIs) in your SAP system, you can use the “SAP Application Hierarchy”. Open the transaction SE80, choose “Repository Information System” and then pick “SAP Applications”. Navigate through the application components and find the BAdI under “Enhancements” -> “Business Add-Ins”. Alternatively, you can use transaction SE18 for working with BAdI definitions directly.

How can I create my own Business Add-In?

To create your own Business Add-In (BAdI), follow these steps:

  1. Define the BAdI in the SAP system using transaction SE18.
  2. Create an interface for the BAdI – this interface will include methods that will be implemented in each BAdI implementation.
  3. Create one or multiple implementations of the BAdI including your custom code.
  4. Activate your implementation and test the functionality within your SAP application.

Can I have multiple implementations for a single Business Add-In?

Yes, you can have multiple implementations for a single Business Add-In (BAdI), which is a key advantage of this enhancement technique. BAdIs enable you to create multiple implementations for specific business requirements, while ensuring that each implementation is independent and modular. This allows for easy maintenance and adaptability to future changes in the SAP application or business process.

Related Technology Terms

  • Application Programming Interface (API)
  • Enterprise Resource Planning (ERP)
  • Customer Relationship Management (CRM)
  • Software Development Kit (SDK)
  • Systems Integration

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