Difference Between SAP Transaction IView and SAP IAC IView.

Internet Application Components:

are complete business solutions for linking mySAP.com components to the Internet.
With IACs users can access business information in mySAP.com components by starting SAP transactions, function modules or reports from a Web browser.

You can integrate Internet Application Components (IACs) as an iView with no difficulty by selecting the SAP IAC template.

The following properties have to be maintained in order to display an Internet Application Component in the portal as an iView:
.       System
·       IAC
·       ApplicationParameter
·       R/3 logon language
·       Internet Application Component (IAC) Alternate Path

Transaction iviews:

We can integrate SAP transactions as an iView with no difficulty by selecting the SAP Transaction template.
Transactions can be started in different GUI variants.

The following properties have to be maintained in order to display a transaction in the portal as an iView:
·         System
·         Tcode
·         GuiType
·         ApplicationParameter
·         AutoStart
·         OkCode
·         UseSPO1
·         UseFrog
·         R/3 logon language

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IAC is nothing but internet application component iviews . These mostly used on service base point to ITS like web applications server by ITS. These will have more internet web pages look and feel.

If you want just normal SAP screen then go for SAP Transaction iview.
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Transaction iViews as the name suggests point to SAP transactions. These iViews can be presented in three flavors out of portal - Win,Web and Java GUI. All have their different advantages. One rule of thumb I have been followins is that if the SAP transaction has a lot of user input go with WinGui (talk to users who use these transactions the most and find out what GUI would make them more happy)

WebGui is pretty good in scenarios where the transaction is going to be mostly getting the information a some little interaction. Haven't had a chance to try Java GUI.

Now about IAC or internet application component iviews. These iviews mostly point to services based on ITS i.e. web applications which are served thru ITS. How are they different from SAP transactions served thru webgui is that these have more web like look and feel. A good exampple of this kind of application is Shopping Cart in the Enterprise Buyer Professional. The web like look and feel is given by the service files in ITS.

Now to your questions

1. Is one preferable to the other?

Please read above

2. Is there a corresponding IAC for every SAP Transaction?

No

3. Can either use WebGui or WinGui mode?

IACs don't have wingui mode.

4. Why do IAC Services need to be "activated"?

Otherwise they won't be published to ITS and you cannot access them.

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I created an SAP IAC iview for the same transaction code with which i created an SAP transaction iview.

While the SAP transaction iview works fine and displays all elements of the sap gui screen correctly
the sap iac iview seems to display the same screen in a different way.

It looks like with sap iac iview not all the screen elements are displayed correctly and the display
is also much different than the original sap transaction screen.

Q)Is there any additional steps which needs to be done besides creating a service on the ITS for the
transaction code which one wants to expose.?


A) Check whether you have performed the following activities while creating IAC iviews :

1. In tx SE80, Chose Menu 'Utilities' -> 'Settings' -> ITS tab.                               
   Publish tab -> Integrated ITS                                                  
2. HAving done so, choose 'Internet services' on the main screen , and make sure you publish the following services as 'Complete Service'
a. WEBGUI
b. SYSTEM
c. IAC
d. SAP_GENERATE

3. Also pls assure that SAP_GENERATE is activated in SICF.

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for more of a web like behaviour the IAC iview is being used.
fo the more SAP like feeling, Transaction iView is being used.