If an inspection characteristic is valuated with a rejection, a quality notification should be created...

To automatically create a quality notification (e.g., QN01) when an inspection characteristic is rejected in SAP S/4HANA QM, specific settings in the master inspection characteristic (MIC, transaction QS23) are required:

Defects Recording Automatically Called Up (A): In the MIC’s control indicators, the "Defects Recording" checkbox must be activated with the "Automatic" option. This triggers defect recording and, if linked to a notification type in Customizing (SPRO > QM > Quality Inspection > Defects Recording), creates a notification upon rejection.

Documentation Required if Rejected (B): Setting "Documentation Required" for rejection ensures that a defect or notification is initiated when the characteristic fails, supporting the automatic process (found in the MIC’s "Inspection Characteristic" tab).

Assignment of Defect Codes for Rejection (C): Defect codes are selected during recording, not pre-assigned in the MIC for automatic notification creation.

Assignment of an Inspection Method (D): Inspection methods guide execution but don’t drive notification automation.

Thus, "Defects recording automatically called up" and "Documentation required if rejected" are the correct answers.References: SAP Help Portal - "Automatic Notification Creation in QM"; SAP S/4HANA QM User Guide - "Defects Recording".