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product hierachy

hi friends

What is product hierarchy?


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  • Posted on Jun 19, 2008 at 11:12 AM

    Dear santosh

    Please go through this help link

    [Define Product Hierarchies|]


    G. Lakshmipathi

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 19, 2008 at 11:15 AM


    In a simple way we can say

    The product hierarchy groups materials by combining different characteristics. Each characteristic is represented by a specific product hierarchy level.

    In SAP, a product hierarchy is used for pricing. A product hierarchy is an alphanumeric character string which consists of 18 characters at the most. Product hierarchy thus define the product and its composition. To take an example, a product hierarchy could be 00010002000300040005. The first four characters 0001 could indicate that the product is a car. The next four characters could indicate 0002 the plant in which the car has been manaufactured. The third set of characters could indicate the color of the car. The next set may determine its engine capacity and so on. Thus, the product hierarchy helps in defining the product composition.

    Hope this will help you.

    reward Point if helpful



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  • Posted on Jun 19, 2008 at 11:23 AM


    Product hierarchy is grouping of material based on different charactristics.It is used for analysis and price determination.

    For example If client is manufacturing washing machine and other electrical goods,you may create hierarchy as

    Level 1- Electrical Goods

    Level 2- Wet appliances

    Level-3 Washing machines.

    System allows only three level of Product hierarchy.

    Please find more info on



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