Using output parameters as input parameters in Python Script Tools?

Question

I created a script tool in ArcMap 10.5. How do I set an output parameter from a tool in the script as an input parameter in another tool at a later point in the same script? Like:

buffout = arcpy.GetParameterAsText(5) # Feature class output of buffer analysis-  THIS IS THE VARIABLE I GET AS OUTPUT THAT I WILL LATER USE AS INPUT
buff_dist = arcpy.GetParameterAsText(6) # Buffer distance parameter

# Run the Buffer Analysis tool on stream feature
arcpy.Buffer_analysis(outfc, buffout, buff_dist)

try:
    # Add Parameters 
    outrast = arcpy.GetParameterAsText(7) # Output raster dataset clipped to stream buffer polygons 
    # Run the clip tool on hillshade using "buffout" variable as output extent 
    arcpy.Clip_management(outpath, "", outrast, buffout, "", "ClippingGeometry", 'NO_MAINTAIN_EXTENT') 
   # Add a success message 
   arcpy.AddMessage("Clipping of hillshade to buffer output successful!") 
except: 
   # Report any error messages that the Buffer tool might have generated 
   arcpy.AddMessage(arcpy.GetMessage(0))

I want "buffout", the output from arcpy.Buffer_analysis() step, to be used as an input parameter in arcpy.Clip_analysis().

Do I define buffout as arcpy.SetParameterAsText()?

If so, how and where do I use arcpy.SetParameterAsText() in my script to accomplish my purpose?

I don't understand that function very well.

Also, I'm assuming I must set buffout as a "Derived" parameter type in the script tool properties after using arcpy.SetParameterAsText() correctly?

Answer 1

There was no need to set the buffout variable as a derived output using the arcpy.SetParameterAsText(). Defining buffout = arcpy.GetParameterAsText(5) and setting an "Output" direction is sufficient for using an output of a gp tool as an input for another gp tool later on in the script.

Also, I edited the script in my question to show the proper position of parameters in the Clip_management method, which resolved the ExecuteError() I was getting.