When you import a scorecard for example, it will not work properly in its new destination unless all of its categories are also present in the destination database. To ensure that all import operations will be successful, the Packager exports all the scorecard's categories when the scorecard is selected in the export process. Those categories are called derived objects. They derive from the selection of the scorecard.
The above description is only an example of many PPM objects that cannot work properly unless other objects exist. Therefore, in almost any export process, many objects that you do not select are derived and exported in the package. These derived objects maintain the integrity of the database to which it is imported.
Selected objects maintain their hierarchy when an entire branch is selected. Derived objects are exported with no hierarchy. Folders or portfolios cannot be exported as derived objects. Because derived objects are not exported with hierarchies, you cannot define their container's import method (no derived containers) and they cannot define storage.
After you select all the desired objects to export, the packager selects the necessary derived objects (for example, categories that appear within selected scorecards or forms).
You define if the selected objects are placed in the root. Derived objects are always placed in import folders.
The default replacement method for selected objects is to report conflicts for all potential replacements. The default replacement method for derived objects is not to replace anything and not to report conflicts, except value lists, where new values are appended if referenced by imported objects (for example - category functions).