Application model A model is termed an application model if it forms an independent unit from a commercial viewpoint, for example, the FI and MM application data models.

A business object is a set of entity types sharing a common external interface. A business object normally consists of a source entity type and those entity types hierarchically dependent on it. The source entity type normally functions as representative of the business object to which it belongs.

An indicator shows whether a modeling object (entity type or data model) can be used in customizing.

You can specify the attribute you wish to assign a modeling object here: