The present invention introduces a method for processing multichannel measurement data achieved especially in MEG and EEG measurements. The method uses a signal space separation (SSS) method and the orthogonality of lead fields in order to calculate linear transformation from physical measurement channels to virtual channels. The geometry related to the measurement arrangement is dissipated and the number of virtual channels is clearly lower than the number of physical sensors. The concept of total information can be applied for such transformed measurement data due to orthogonality. The method offers simplified post-processing of the biomagnetic data, such as for source modelling. The total information can also be interpreted as a robust quantity describing the physiological state of a patient.