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Product Hiearachy

Former Member
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Hi,

Can anybody guide me how to configure Product Hiearachy and what is the impact of this fuctioning in SAP-SD.

What is the benefit of Product Hiearachy ?

Regards

Harmeet

Accepted Solutions (0)

Answers (2)

Answers (2)

former_member550050
Active Contributor
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Hi

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

This helps you to identify from the product code from the top level hierarchy till the the end product

In our example

beer is a material group

Scotch is a material group

Rum is 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

how to configure that is already suggested by Mr.Murali

Regards

raja

Edited by: ramanathan raja on Dec 4, 2008 12:23 PM

former_member204513
Active Contributor
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Dear Harmeet,

Product hierarchy means,

An alphanumeric character string for grouping materials by combining different characteristics.

The product hierarchy is used for evaluation and pricing.

To configur the Product hierarchy go through this IMG path

SPRO>IMG>Logistics General>Material master>settings for key fields>Data relevant to sales and distribution>Define product Hierarchies.

I hope this will help you,

Regards,

Murali.