Classification
Within the real world you find the following definition of classification:
Classification is a process related to categorization, the process in which ideas and objects are recognized, differentiated and understood.
Classification is the grouping of related facts into classes. It may also refer to a process which brings together like things and separates unlike things.

Using classification in a SAP system supports users when searching for SAP objects. There is less emphasis on entering an exact object number, and more on entering object attributes and values.
You can search for a forklift, for example, according to the used engine, or the possible tonnage. You find objects that match your search criteria exactly, or are similar to them within your defined limits.
Classification Functions
Watch the following video to understand how to use classification functions in your SAP system.
Characteristics
When you start with the creation of characteristics you first have to define the data type and the behavior of possible values. Next, you define allowed values for your characteristic.
Classes
When you start with the creation of classes you have to select the right class type. This class type corresponds with the SAP object type.
Next you assign the relevant characteristics.
Assignment and Value Assignment
The classification of objects means the assignment of objects to a class and the assignment of characteristic values to the objects.
This classification can either occur directly in the object or in relevant transactions in the classification area.
Finding Objects
A classification search can be executed in several places.
You can start the search directly, or call it from the classified object.