login/password_charset is a SAP Parameter attribute which is used to control character set used for passwords information. This is available within R/3 SAP systems depending on the version and release level.
Below is the standard documentation available and a few details of the attributes values .
This parameter is only evaluated if the profile parameter
This parameter defines the characters of which a password can
consist:
Value 0
The password can only consist of digits, letters, and the
following 32 (ASCII) special characters:
!"@ $%&/()=?'`*+~#-_.,;:{[]}\<(><<)><(>><)>|
Value 1
The password can consist of any characters, including
national special characters (such as ISO Latin-1, 8859-1);
however, all characters that are not contained in the set
listed above (at login/password_charset = 0) are mapped to
the same (special) character and the system therefore does
not differentiate between them.
This value is the default value (backward-compatible).
Value 2
The password can consist of any characters; it is converted
internally to the Unicode format UTF-8. If you are using a
non-Unicode-capable system, you should, however, note that
it may be the case that it is not possible to enter all
characters on the logon screen (restricted due to the
codepage determined by the system language).
Caution
With login/password_charset = 2, passwords are stored in a
format (=<(>><)> code version "D") that cannot be interpreted by systems
with an older kernel (=<(>><)> see SAP Note 735356); you should
therefore
only set the profile parameter to the value 2, if you have ensured
that all systems involved support the new password coding.
See SAP Parameter Documentation for full SAP documentation for this profile parameter.