This post is to be used in conjunction with our live SAP Training class where the instructor has discussed the business importance of product hierarchy and how it is used. This post only describes product hierarchy from the technical perspective. For full fledged understanding, please visit our SAP SD Training class online. This post is also useful for students undergoing SAP MM Training as well.
Product hierarchy is based on the database structure PRODHS. It is 18 characters in length and the standard breakdown is as shown below.
PRODH1 CHAR 5
PRODH2 CHAR 5
PRODH3 CHAR 8
If you wanted to customize this structure you would have to change the PRODHS structure which is outside of the scope of this post and is done by an SAP ABAP consultant. However, if you choose to add new hierarchies based on the already existing structure of ( 5 , 5 and 8 characters ) , you can do the following.
Step No. 1 : Go to [ spro -> IMG -> Logistics General -> Material Master -> Settings for Key Fields -> Data Relevant to Sales and Distribution -> Define Product Hierarchies ]
Step No. 2 – Click on Maintain Product Hierarchy.
Step No. 3 – You can create your own product hierarchies at any level you like.
For example, the following are the standard hierarchies available as part of the standard SAP IDES System.
You can see the added SAP product hierarchy if you re-open the material again or wish to create a new one.
Exercise : A company has chosen to offer welding services as a separate product line and wishes to add that to the product hierarchy. Create a new product hierarchy as follows. If they already exist ( have been created by other SAP Training students ) please create your own , by substituting XXX for your own number.
00XXX Welding Services
00XXX Gas Welding
0000XXXX Aceylne Welding
0000XXXX Ethylene Welding
00XXX Arc Welding
0000XXXX Spark Welding
00XXX Electric Welding
0000XXXX A/C Welding
0000XXXX D/C Welding