Scenario
Let's first have a look at Characteristics and learn how they can be used to store master data (master data-bearing Characteristic).
Master Data-Bearing Characteristics

Characteristics are business reference objects that are used to analyze Key Figures.
Before we examine the maintenance tabs of a Characteristic, we must describe the concept of master data-bearing Characteristics. Master data-bearing Characteristics specify tables of texts, attributes or hierarchies that are linked to them to provide additional information. It depends on your business process and the Characteristics involved to decide whether or not to enable these master data tables. They provide a significant source of information for your reporting needs in many situations.
In modeling, you can design if a Characteristic will be master data-bearing or does not store master data at all. This depends on the business needs. As an example, you could expect a Characteristic like product to be defined as a master data-bearing Characteristic, which would probably not be the case for a Characteristic like phone number. Showing only keys of product values (product numbers) in reports offers very limited information. At least, a description of the product values is needed to offer meaningful information to the business user. However, only showing the phone numbers (just the key, without a description or attributes) may be sufficient.
You enable master data-bearing Characteristics by selecting the appropriate checkboxes for text, master data (attributes) or hierarchies in the tabs of the definition of a Characteristic. If any of these options are checked, the Characteristic is considered to be a master data-bearing Characteristic.