﻿ Characteristic Derivation (Profitability Analysis)

## Characteristic Derivation

In this step, you set up derivation of characteristic values.

Derivation lets you find values for certain characteristics automatically based on the known values of other characteristics, where these characteristics are logically dependent on one another.

### Use

1. When you assign postings manually to a profitability segment, it is usually only necessary to enter values for a few characteristics. The system can then derive other characteristic values that are required in Profitability Analysis.
2. External applications can often only supply values for some of the characteristics in Profitability Analysis, since not all of them contain information that is relevant there. Derivation supplies the unspecified characteristic values on the basis of known ones.

### Example

```Source field	 Target field / Source field  Target field
```
```Product		 -> Product range	->  Division
```
```Customer		-> Customer group
```
```Representative  -> Represent. group   ->  Sales region
```

### Derivation strategy and derivation steps

The derivation strategy consists of a series of derivation steps, in which individual characteristic values are derived from the values of other characteristics. Each of these steps represents a derivation method by which target fields are derived from source fields. The source fields are characteristics whose values are known and used to derive the target fields, which are the characteristics whose values are derived. Each step represents a logical relationship between the target and source fields.

### Derivation methods

You can use any of the following derivation methods:

• Derivation rule
Derivation rules are "If->then" rules that consist of combinations of source fields and the corresponding target fields.
• Table lookup
Table lookups are used to look up individual records in any table. The source fields correspond to the key of a table which contains the target fields in its data part.
• Move
A "move" moves the content of any source field or a constant into the target field.
• Customer hierarchy
If you use characteristics in your operating concern to represent levels of a customer hierarchy, these characteristics are automatically filled with the customer hierarchy transferred from Sales and Distribution (SD) together with the sales order or billing document. Otherwise, you need to derive these characteristics by creating a derivation step "Customer hierarchy". Here you need to specify the customer hierarchy category that is used in SD.
• Customer enhancement
The standard enhancement "COPA0001", component 003, lets you define your own derivation logic. You can use this enhancement anywhere -- even more than once -- in the derivation strategy. For more information, see the documentation on the enhancement.