Use
In this tabstrip, you determine whether you want to compound the characteristic to other InfoObjects. You can compound InfoObjects to map the data structure of a source system. Using compounded InfoObjects you can map special links between InfoObjects in the source system in BW.

For example, you can only evaluate the characteristic ‘storage location’ in connection with ‘plant’, if storage location A for plant B is not the same as storage location A for plant C. In this case, define a compounding characteristic ‘storage location’ to ‘plant’, so it is clear what the characteristic is.
One exception in compounding, is the option of
compounding characteristics to the source system ID. You may need to do this if there are identical characteristic values for the same characteristic in different source systems, but these values indicate different objects.
The extensive use of compounded InfoObjects, particularly if you add a lot of InfoObjects to a compounding, can influence performance. Do not try to display hierarchical links through compounding. Use
hierarchies instead.