Passwords are not saved in shortcuts created within SAPGUI. In fact, when you edit a shortcut, the password field is grayed out.
Why? Because you need to first register the SAPshortcuts using the following:
sapshcut -register
SAPSHCUT.exe is located under the SAPpcsapgui directory, but in SAPGUI 4.0 it was called SAPSH.exe.
Once you do the registration, you need to open the registry (regedit or regedt32) and change the value data of "EnablePassword" to "1" under the following:
HKCUSoftwareSAPSAPShortcutSecurity
Then, you'll be able to type and save your passwords.
sapshcut.exe -register
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This was first published in July 2002

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