Classification
The concept of classification can be compared to a filing cabinet. When documents are not organized in a clear and structured way, finding the required information becomes difficult. The same challenge exists in SAP when master data is not classified and organized consistently.
In this analogy, classes represent the drawers of the filing cabinet. They provide a structured way to group similar objects based on common characteristics and attributes. By organizing data into classes, products and other master data objects become easier to identify, search, and manage, improving transparency and efficiency across business processes.

Classification in SAP ERP
The use of classification in the SAP ERP system supports users when searching for SAP objects. Instead of entering an exact object number, users can search by object attributes and characteristic values.
Example: Adding a New Component to a Material BOM
You need a material master as a new component in a BOM. Since materials in your company are classified, you start by searching for the relevant classes in which materials are assigned.
After identifying the appropriate class, you can display the assigned characteristics. You then select the required characteristic values and execute the search.
The system returns a list of materials that match the specified selection criteria. Finally, you select a suitable material from the results and add it to the BOM.
Exploring Classification Functions
Watch the following video to gain a better understanding of the key concepts and terminology used in classification functions.
Class Hierarchy
In SAP Classification, classes do not have to exist independently alongside one another. To improve structure and reusability, classes can be organized in a hierarchical class structure. In this approach, superordinate classes can be created to group related classes and establish logical relationships between them.
For the forklift example, individual classes for different components can be assigned to higher-level classes that represent broader product categories. This hierarchical organization improves transparency, simplifies navigation within the classification system, and supports the consistent management of product attributes across related objects. As a result, classification data can be structured in a way that reflects the hierarchical nature of the product itself.

SAP Classification supports the creation of hierarchical class structures that enable the inheritance of characteristics. This approach simplifies the maintenance of classification data when the same characteristics are required across multiple related classes.
Instead of assigning identical characteristics to each class individually, the characteristics can be assigned once to a superordinate class. All subordinate classes within the hierarchy automatically inherit these characteristics and can use them without additional maintenance effort.
This inheritance mechanism improves consistency, reduces redundancy, and simplifies the management of complex classification structures. Changes made to inherited characteristics at the higher-level class are automatically available to all subordinate classes, ensuring a uniform classification model across related products and components.