SAS provides a knowledge base entry at: http://support.sas.com/kb/32/009.html to show how this can be done with a SAS query result - writing back to the same source data set.
In EITHER case, you need to have WRITE access to the file space & associated metadata library on the server.
Note: A google search on "site:sas.com "'Copy to SAS Server"" also provides additional information on hotfixes and functionality capable via this menu item.