Label format assignment rules associate a label to a business object based on parameters and restrictions you specify. After you define label formats and associate them to the appropriate business flows, you can define label format assignment rules.
The figure in the slide provides an example of the type of rule you could create to generate an LPN Content label for hazardous items. If the material meets all of the restrictions when the rules engine executes the rule, then Warehouse Management generates the hazardous item LPN Contents label.

Creating label format rules is an optional step. Some implementations require only a single label format for each label type. In this case, the Warehouse Management uses the default label format for each type. It also uses the default if there are no applicable rules. If the implementation requires more than one label format for a label type, you must create label format rules.