You should use navigational attributes if you want to report according to todays value constellation of an attribute.
Example :
Last month material 'A' was assigned to material group 'X'.This month the assignment was changed to material group 'Y'.You are not interested in the old assignment and always want to report based on current assignments.Which means you want to report as if material 'A' belonged to material group 'Y' from the beginning.
To achieve this you should define the attribute(material group) as navigational attribute of the characteristic(material) in your infocube.
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