SAP BLOG Material creation with product hierarchy……..

SAP Blog

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22 Ara 2017
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Dear SAP Folks,

In this blog post, I will share how to map product grouping ( Brand-Category- Sub category level wise) in material master


A product hierarchy is used in the SD area for analysis and price determination.The Prod.hierarchy field is an alphanumeric character string that groups together materials by combining different characteristics. In a standard SAP system, the product hierarchy can have up to three levels. Levels 1 and 2 have five characters each, and level 3 has eight. The product hierarchy is defined using Transaction V/76.

Refer below link also one of our friends shared product hierarchy blogs it also helpful……

Product Master Hierarchy | SAP Blogs

Introduction to Product Hierarchy in SAP S/4HANA Cloud | SAP Blogs

Setting Up & Using The Product Hierarchy Functionality in SAP S/4HANA Cloud 1911 | SAP Blogs

Now follow the same,

IMG → Logistics – General → Material Master → Setting for Key
Fields → Data Relevant to Sales and Distribution → Define
Product Hierarchies

Based on the requirement create Product hierarchy strcture


XXXXX (Hierarchy code) – Brand (Level 1)

YYYYY (Hierarchy code) – Category (Level 2)

ZZZZZ (Hierarchy code) – Subcategory (Level 3)

Now create Level 1 – Its brand here enter hierarchy code and description

1st Level- Hierarchy code length is 5 digit alpha neumaric.

XXXXX – Brand


Now create Level 2 – Its Category here enter hierarchy code and description

2nd Level- Hierarchy code length is 5 digit alpha neumaric.

YYYYY – Category


Now create Level 3 – Its Sub-Category here enter hierarchy code and description

3rd Level Hierarchy code length is 8 digit alpha neumaric.

ZZZZZ – Sub-Category


We created product hierarchy master.


Now specify product hierarchies code to Material Master Data

Now go to the material master basic data 1 view and select product hierarchy field now it shows brand


If you want 1st level then choose only one level

If you want 2nd level means then click next level……


If you want 2nd level then choose

If you want 3nd level means then click next level……


Here select level 3 Sub – Category


Now see product hierarchy field upto three levels ( Brand – Category – Sub Category )



I hope this is useful for all of our community members

I believe, It will be helpful and will provide sufficient information to the readers

Thanks For Reading. Please share your reviews & feedback…

Thanks & Regards

Venkatakrishnan Subramani

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