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The system copy guides can be found at http://service.sap.com/instguides*. Different backup/restore procedures exist for the different databases supported by SAP.
If you restore PRD over DEV, it will wipe out everything. You should therefore find a point in time in which development projects finish and are brought into production. You should only re-create DEV from a backup of PRD if both systems are more or less in sync or if your development teams agree that certain developments are lost.
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