Business Object Instance in SAP?

pts.
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EDI
MySAP
SAP
SAP development
Workflow
When an external app creates a SAP business object by calling GetSAPObject - is the instance created in SAP as well (in memory)? Or does the instance exist only in the external application as a proxy handle but no real SAP object instance behind it? I read somewhere that SAP creates a communication link between the proxy and SAP(BOR)..what is the link if the object instance does not really exist in SAP? Also, after completing an instance dependent BAPI method ...should the external program do something to free the object instance in SAP if it has created one?
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Read up on the JCO and Bapi’s.
This is completely on the wrong track.

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