What is classification in SAP PPM-PFM - Portfolio Management?

SAP Term: classification

• Component: PPM-PFM

• Component Name: Portfolio Management

• Description: The assignment of an item or initiative to one or several buckets of a classification hierarchy. For each classification of an item or initiative, you can maintain factors for the distribution of the financial and capacity planning values.

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• Key Concepts: 
  Classification in SAP PPM-PFM Portfolio Management is the process of assigning a set of characteristics to a portfolio item. This helps to organize and categorize the portfolio items, making it easier to search and analyze them. It also helps to identify the relationships between different portfolio items. 
  
  How to use it: 
  In SAP PPM-PFM Portfolio Management, classification is done by assigning attributes to a portfolio item. These attributes can be anything from the type of item (e.g. project, program, etc.), its status (e.g. active, completed, etc.), its priority (e.g. high, medium, low), or any other relevant information. Once the attributes are assigned, they can be used to search and filter the portfolio items for analysis and reporting purposes. 
  
  Tips & Tricks: 
  When assigning attributes to a portfolio item, it is important to ensure that they are consistent across all items in the portfolio. This will make it easier to search and analyze the items later on. It is also important to keep the attributes up-to-date as changes in the portfolio occur. 
  
  Related Information: 
  Classification is an important part of SAP PPM-PFM Portfolio Management as it helps to organize and categorize the portfolio items for better analysis and reporting. It is also used in other areas of SAP such as Materials Management and Human Resources Management.