The SYSTEM creates a step environment before it executes a step. Step environment CONSTITUTES of the VARIABLES which apply to the step, inherited from the server, project, and step environment in an orderly manner.

1. Server environment variables are copied and pasted to next step environment
2. Project environment variables are functional to the step environment. If project environment consists a variable in the same name as the variable in the server environment, the value will be updated in the Variable Action in both the variables.
3. Step environment: step environment variables are applied to the step environment. In SCENARIOS where the variable in the step environment is with the same name as the inherited variable from the server or project ENVIRONMENTS, then the value is updated according to Variable.

The system creates a step environment before it executes a step. Step environment constitutes of the variables which apply to the step, inherited from the server, project, and step environment in an orderly manner.