@MS Techie The managed SAP connector integrates with SAP systems through your on-premises data gateway. For example, in send message scenarios, when a message is sent from a logic app to an SAP system, the data gateway acts as an RFC client and forwards the requests received from the logic app to SAP. Likewise, in receive message scenarios, the data gateway acts as an RFC server that receives requests from SAP and forwards them to the logic app.
You need to install the on-premises data gateway on a host computer or virtual machine that exists in the same virtual network as the SAP system to which you're connecting.
This document cover in-depth how you can connect SAP systems from azure logic app (prerequisites, sap-compatibility, etc)