Dear Venkatesh,
Check SAP Note 1896539 - Questions about compatibility and end of support to non-Unicode systems:
- It is possible to upgrade your non-unicode system to a new non-unicode version. In your case, you can upgrade from SAP ERP 6.05 non-unicode to SAP ERP 6.07 non-unicode.
- New system installation is not supported on non-unicode, you can install a new system only on unicode. Your new BW installation will be in unicode.
- There can be incompatibility issues between your non-unicode system and your unicode system. It is supported but not recommended, so the best idea is to migrate to unicode your ERP.
- SAP strongly recommends to move to unicode.
Best regards.