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Clarification of some SD words

Former Member
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Hi SD experts,

What is the difference between :

- Product hierarchy,

- Material group

- and Material pricing group ?

In SAP terms and functional ones ??

Regards,

Bahia.

Accepted Solutions (1)

Accepted Solutions (1)

former_member550050
Active Contributor
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Hello Bahia

I will explain you with an example

Say BAR code given is AA

In bar you will have Alcoholic,,soft drinks and may be fresh juices

Alcoholic code is 01

Soft drinks code is 02

Fresh juice code is 03

Under alcholic you have three types say Scotch, Beer,Rum

Scotch cde is 04

BeerCode is 05

Rum code is 06

Under scoth if you have two varieties Bagpiper, madowells

bagpiper code is 07

Mcdowells code is 08

Under beer if yiu have 2 varieeties say King fisher, golden eagle

King fisher code is 09

golden eagle code is 10

Now if you want to put a sales order for mcdowells you will reperesent it by AA010408

It means baralcoholscotch--mcdowells

If you want to put sales order for golden eagle beer then you will represent it by AA010510

It means baralcoholbeer---golden eagle

This type of representation is Product hierarchy

In our example

beer is a material group

Scotch is a material group

Rumis a material group

Under beer material group you will have two individual materials that is king fisher and golden eagle

In short material group is the grouping of the materials of similar nature and it will be the last level

Under this there will be materials which will be individual in nature

In our example alcoholic,soft drnks and fresh juices are product hierarchy level 1

Bar is the product hierarchy level 2 that is the highest hierarchy in our example

Like this n no of hierarchy levels you can build for a product

I have tried to explain you to my fullest capacity

hope you got it

Regards

raja

Edited by: ramanathan raja on Nov 27, 2008 11:56 PM

Former Member
0 Kudos

Thank you very much Raja.

This was perfect.

Best regards,

Bahia.

Answers (2)

Answers (2)

former_member184555
Active Contributor
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former_member217082
Active Contributor
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Hi bahia

Difference between material grp and material pricing grp

Material group -


You can group the materials into a one material group , for that you will be using material grp, say for example you have finished materials and those materials can be grouped into one material grp

Material pricing group -


This is used as a field for material grp , for pricing purpose for that you have separate field Material pricing grp

Regards

Srinath

Former Member
0 Kudos

Thank you for you answer.

Then what is the difference between product hierarchy and material group ?

I mean from a functonal point of view what is the purpose of each one of those fields ?

Edited by: Bahia M. on Nov 27, 2008 6:47 PM

former_member217082
Active Contributor
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Hi bahia

Product Hierarchy and Material group

It is another parameter to group materials , and also for pricing also it can be used. But the difference is in material group we will group materials which are finally the outcome materials (say all finished materials) , But in Product Hierarchy we cant say that it is only for finished materials.As under the finished material there can be other finished material also so we can club those materials in the form of product hierarchy

Regards

Srinath

Former Member
0 Kudos

Thank you for your explanations too.

Regards,

Bahia.