Product Version and Instance in Managed Systems

Dear experts,

I'd like to ask your help in understanding one point regrading the Product Version and Instance in Managed System Configuraiton in Solution manager (7.1 SP8).

While technical system was created automatically using RZ 70, I had to create manually the  Product System.

First of all, how can I know if I have chosen the right ones?

In this case the system is:

SAP ERP Central Component 5.0

SAP_BASIS 640

Are the product instances and versions right? Could you please share any documentation how to automate this process or how to correctly chose?

I do not know if this is very obvious but the documentation addressing this issue is a little bit confusing in my opinion. And the terminology very "rich".

Thanks for your t ime and effort.

Regards