How to handle dynamic objects in QTP?

QTP has a unique feature called Smart Object Identification/recognition. QTP generally identifies an object by matching its test object and run time object properties. QTP may fail to recognize the dynamic objects whose properties change during run time. Hence it has an option of enabling Smart Identification, wherein it can identify the objects even if their properties changes during run time.

If QuickTest is unable to find any object that matches the recorded object description, or if it finds more than one object that fits the description, then QuickTest ignores the recorded description, and uses the Smart Identification mechanism to try to identify the object.
While the Smart Identification mechanism is more complex, it is more flexible, and thus, if configured logically, a Smart Identification definition can probably help QuickTest identify an object, if it is present, even when the recorded description fails.

The Smart Identification mechanism uses two types of properties:
 
Base filter properties – The most fundamental properties of a particular test object class; those whose values cannot be changed without changing the essence of the original object. For example, if a Web link’s tag was changed from to any other value, you could no longer call it the same object.

Optional filter properties – Other properties that can help identify objects of a particular class as they are unlikely to change on a regular basis, but which can be ignored if they are no longer applicable.