Definition
A reference characteristic provides the technical properties for another characteristic. Technical properties include attributes, master data, texts, hierarchies, data type, length, number and type of compounded characteristics, lowercase letters, and conversion routine. These characteristics can only be maintained with a reference characteristic.
Structure
In addition to the technical properties, a characteristic also contains business-orientated semantics. Properties, such as description, display, text selection, relevance to authorization, person responsible, constant, and exclusively attribute, are also maintained with characteristics that are based on one reference characteristic.

The characteristic sold-to party is based on the reference characteristic customer and therefore has the same values, attributes, and texts.
More than one characteristic can have the same reference characteristic: The characteristics sending cost center and receiving cost center both have the reference characteristic cost center.