A) A surrogate key is a system-generated (non-meaningful from a business perspective) primary key for purposes of ensuring uniqueness within a database table.
Example: Some tables have columns such as AIRPORT_NAME or CITY_NAME which are stated as the primary keys (according to the business users) but ,not only can these change, indexing on a numerical value is probably better and you could consider creating a surrogate key called, say, AIRPORT_ID. This would be internal to the system and as far as the client is concerned you may display only the AIRPORT_NAME.
B) Another benefit you can get from surrogate keys (SID) is :
Tracking the SCD - Slowly Changing Dimension.
Let me give you a simple, classical example:
On the 1st of January 2002, Employee 'E1' belongs to Business Unit 'BU1' (that's what would be in your Employee Dimension). This employee has a turnover allocated to him on the Business Unit 'BU1' But on the 2nd of June the Employee 'E1' is muted from Business Unit 'BU1' to Business Unit 'BU2.' All the new turnover has to belong to the new Business Unit 'BU2' but the old one should Belong to the Business Unit 'BU1.'
If you used the natural business key 'E1' for your employee within your datawarehouse everything would be allocated to Business Unit 'BU2' even what actually belongs to 'BU1.'
If you use surrogate keys, you could create on the 2nd of June a new record for the Employee 'E1' in your Employee Dimension with a new surrogate key.
This way, in your fact table, you have your old data (before 2nd of June) with the SID of the Employee 'E1' + 'BU1.' All new data (after 2nd of June) would take the SID of the employee 'E1' + 'BU2.'
C) To generate sequence number
Generally it starts with 1
Basically it is to differentiate the primary key
The Surrogate key role is it links the Dimension and Fact table
Data type of the surrogate key is either integer or long.