File Operations in Taxonomies 
You use this function in the following scenario: Many of the documents are not created in repositories that are managed with Knowledge Management. Instead, the documents are retrieved from Web sites using crawlers and classified in a taxonomy. All the documents are available in a single taxonomy instead of at different Web sites.
Advantage of this scenario: You can also upload some local documents, such as overview information about each category, directly into the categories. It is no longer necessary to create these documents first in a repository and then classify them.
Disadvantage of this scenario: You no longer have the functionality that is available when you create the documents in KM repositories. For example, if you want to restrict access to documents, you should set the permissions for each individual document.
Note
In the default scenario for Knowledge Management, create documents in folder hierarchies and then classify them in a taxonomy. The folder hierarchy represents the navigation structure for authors, and the taxonomy represents the navigation structure for readers. The permissions you set for folders of the folder hierarchy are inherited by the documents.
Prerequisites
In the configuration of Content Management you activated the Properties service ( 
Configuration 
Content Management Repository Manager CM
Repository Manager taxdata 
) for the taxonomy data repository.
You also have to activate further services which you want to use for this repository, for example, the Subscription service.
Features
You can handle documents and folders in a similar manner in taxonomies to repositories. The same commands are displayed for users and content managers in taxonomies as in KM repositories, for example Upload, Copy or Move. This enables you to work intuitively with the known commands.
However, these commands behave differently in taxonomies to in repositories. For example, if you move a link to a document from one category to another, the system reclassifies the document.
You can carry out the following activities in taxonomies:
Upload and create documents in categories
You can upload documents from your local PC to a category of a taxonomy or create documents online in categories. The system stores these documents in a hidden repository and classifies them in the relevant category.
Copy and move documents
You can copy and move links to documents between the categories of taxonomies. This results in a classification or reclassification of the documents.
Copy and move taxonomy folders
You can copy and move category folders within a taxonomy in order to restructure the taxonomy.