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In SAP (ABAP) logon groups are used for load balancing.

We can add and delete the logon groups using SMLG Tcode

1) Creating a logon group
    Run Transaction code SMLG
    Provide the name of log on group(Like SAP_ECC_NORTH)
    Provide the name of instance which you want to be include into group
    Click on Copy button

2)  Deleting an Entry from Group
        To delete any instance assignment from group you can click on delete assignment
3)  Deleting group
              To delete the  log on group  click on delete group

Using Load balancing with SAP GUI 720

1) Click on create button ->select connection ->Press Next
2) Select group/server selection under connection type
3) Provide rest related detail
4)  Ensure that services file(C:\windows\system32\etc\drivers\services) hold this entry for SAP server e.g.C11
         sapmsC11 3670/tcp    ## Here instance number for SAP system is 70
     Never forget to hit enter after this entry.

Go here for recommendation on load balancing

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