What is derived characteristic in SAP LO-AGR-CC - Commodity Contracts, Expenses, Basic Functions?

SAP Term: derived characteristic

• Component: LO-AGR-CC

• Component Name: Commodity Contracts, Expenses, Basic Functions

• Description: A characteristic whose value is automatically determined using a user-defined formula that is based on the value of one or more other characteristics. Derived characteristics are not directly part of a material classification but can be used in value and volume schedules. A global derived characteristic is a derived characteristic that is used commonly across industries.

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• Key Concepts: 
  A derived characteristic is a characteristic in SAP Commodity Contracts, Expenses, and Basic Functions (LO-AGR-CC) that is calculated from other characteristics. It is used to store values that are derived from other characteristics and can be used to display information in reports. 
  
  How to use it: 
  Derived characteristics can be used to store values that are calculated from other characteristics. For example, a derived characteristic can be used to store the total cost of a contract by adding up the costs of all the components of the contract. The derived characteristic can then be used in reports to display the total cost of the contract. 
  
  Tips & Tricks: 
  When creating a derived characteristic, it is important to ensure that the formula used to calculate the value is accurate. This will ensure that the value stored in the derived characteristic is correct and can be used in reports accurately. 
  
  Related Information: 
  For more information on derived characteristics in SAP Commodity Contracts, Expenses, and Basic Functions (LO-AGR-CC), please refer to the SAP Help documentation.