What is derivation of characteristics in SAP CO-PA - Profitability Analysis?

SAP Term: derivation of characteristics

• Component: CO-PA

• Component Name: Profitability Analysis

• Description: A process by which characteristic fields that do not have values are filled.

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• Key Concepts: 
  Derivation of characteristics in SAP CO-PA Profitability Analysis is a process that allows users to create new characteristics from existing ones. This is done by combining existing characteristics and assigning them a new value. For example, a user can create a new characteristic called “Region” by combining the existing characteristics “Country” and “City”. 
  
  How to use it: 
  In order to use the derivation of characteristics in SAP CO-PA Profitability Analysis, users must first define the characteristics they want to combine. This can be done in the “Characteristics” tab of the CO-PA Profitability Analysis application. Once the characteristics have been defined, users can then create a new characteristic by combining the existing ones and assigning it a new value. This can be done in the “Derivation of Characteristics” tab of the application. 
  
  Tips & Tricks: 
  When creating a new characteristic using the derivation of characteristics in SAP CO-PA Profitability Analysis, it is important to ensure that all of the existing characteristics are properly combined and assigned a new value. This will ensure that the new characteristic is accurate and up-to-date. Additionally, it is important to remember that any changes made to an existing characteristic will also affect any derived characteristics. 
  
  Related Information: 
  For more information on how to use the derivation of characteristics in SAP CO-PA Profitability Analysis, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_CO_PA/731/en-US