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Author's profile photo Sreelal Soman

Introduction to Product Hierarchy in SAP S/4HANA Cloud

With SAP S/4HANA Cloud 1911 release we have provided users with capability to maintain Product Hierarchy!!!

This feature has been enabled based on the request up voted via Influence Portal. See here.

Key Features

In SAP S/4HANA Cloud (1911), Product Hierarchy has the following key features:

  1. Reference to product from a hierarchy version.

    • In SAP S/4HANA Cloud, you assign a Product to a Product hierarchy version using the “Manage Product Hierarchies” (App ID: F4359) fiori application.
    • Thus, one product can be part of multiple hierarchies at any point of time, but note that in a hierarchy version a product can be child of only one hierarchy node.
  2. No limit to the number of levels possible in the product hierarchy.

    • We do not restrict the number of levels possible for creation of a product hierarchy.
    • A hierarchy subnode/normal node has a length restriction of 24 characters, and these nodes can be configured in a Self Service Configuration UI (SSCUI). These nodes are independent and thus can be used in multiple product hierarchies or hierarchy versions.
    • But a node can be assigned only to one parent/level within a product hierarchy version. This behavior is similar to that of product assignment in a product hierarchy.
  3. Option for time dependent non-overlapping product hierarchy versions

    • While creating a product hierarchy, user needs to enter the required fields like Hierarchy ID, its description and Valid From date. This hierarchy version would be valid on activation from Valid From until the Valid To dates.
    • Valid To date field is by default set to 31.12.9999. If you wish to have a time dependent hierarchy, this value can be adjusted to the required validity end date.
    • A hierarchy version can be copied to a new version for a different time period for same product hierarchy, or as a new product hierarchy altogether with a different Hierarchy ID.
  4. Maintenance of Product Hierarchy in a tree structured display via Fiori application “Manage Product Hierarchies“.

    • Using this Fiori application user would be able to maintain a hierarchy in an easy to understand graphical tree structure display
    • You can also maintain Product Hierarchies by importing details/data from Microsoft Excel spreadsheet/file, for specific version at a time.
    • You can easily assign multiple subnodes / products to a specific node in a single step.
    • Note that maintenance of product hierarchy is currently possible only with “Manage Product Hierarchies” application.
    • The application “Manage Product Master Data” will only display the relevant hierarchy in the “Distribution Chain” page. This display is possible only for those product hierarchies which are assigned to distribution chains using the application “Manage Product Hierarchy Assignments” (App ID: F4240)

How to maintain a hierarchy

Now we explain the steps involved to maintain a product hierarchy and for example we consider a Tools hierarchy.

Step 1: Maintain list of possible hierarchy nodes

Content expert maintains a list of allowed hierarchy nodes and its description in the Self Service Configuration UI (SSCUI) available in the application “Manage Your Solution” for the section “Configure Your Solution“. Detailed steps are as below:

  1. Open the application “Manage Your Solution“.
  2. Click “Configure Your Solution” button.
  3. After the application has been loaded, set the filter for Application Area to the value “Database and Data Management“.
  4. From the filtered list, click on entry for Sub Application Area “Product“.
  5. Once the list of possible configuration steps for Product are loaded, we are provided with an option “Configure Nodes for Product Hierarchies“.
  6. Read the “Configuration Help” available to know more about how you can configure the nodes and perform the steps mentioned.
  7. Click on “Configure” for this configuration step to obtain the Visually Harmonized GUI screen to maintain the list of possible nodes.
  8. The nodes maintained can be transported from quality system to productive system.

This list of nodes will be available to the master data specialist to choose from while creating any hierarchy. Find below a list of sample nodes maintained for usage in our Tools hierarchy.

Step 2: Create a product hierarchy version

Once Step 1 has been completed, product master data expert can maintain a hierarchy using the Fiori application “Manage Product Hierarchies” by following the below steps.

  1. Click + ( Create new Hierarchy ).
  2. Once the Create New Hierarchy dialog is available, enter the value for Hierarchy ID, its description and Validity period

    • Hierarchy ID, would be the Level 1 entry for the hierarchy or the root node. Any further nodes addition would be made as child node of this ID only.
    • Validity period of the product hierarchy would be controlled by the Valid From/To fields. If you do not adjust the Valid To field’s default value of 31.12.9999 as per requirements, the resulting Hierarchy would be equivalent to a time independent hierarchy starting from provided Valid From date.
    • Note field can be used to maintain a version specific language independent text.
  3. Click “Create” to obtain a draft version of the new product hierarchy in the system.

  4. Once the draft version of the new hierarchy is created, application automatically filters out the new hierarchy.
  5. User can choose this draft version entry in the results to view the details of the hierarchy.

  6. After the Details view is loaded, click on “Edit” button to change the version from display mode to edit mode.
  7. Once the application is in edit mode, user can click on the Add button ( + ) against the root node to add Level 2 nodes of the product hierarchy.

    • On clicking the Add button, user is provided with a “Add Node” dialog where user can select on adding multiple Subnodes or Products.
    • Subnodes options would allow the user with option to select Level 2 nodes of the product hierarchy using the value help available for the field “Node“. These nodes are those entries which were maintained in the SSCUI as part of Step 1.
  8. Add the subnodes for the hierarchy structure based on the requirements.

    • For our example shown above, next level will be the node HAND_TOOLS.
    • HAND_TOOLS node would be provided with subnodes – PLIERS and WRENCHES

    • Subnode PLIERS is further provided with subnodes, CUTTING_PLIERS and ADJUST_JOINT_PLIERS.
    • Click OK.
    • Repeat this step for each subnode until the required hierarchy structure is in place.
  9. Add Products to the required subnodes.

    • Click on Add button against the required subnode where product should be assigned.
    • Change the mode to Product in the “Add Node” dialog to obtain option to select the products.
    • Use the product value help to choose the required set of products to be assigned to the selected subnode.

    • Click OK.

  10. Once the required set of products are assigned, save the product hierarchy version by clicking “Save” button

  11. After saving the product hierarchy version, user can click “Activate” to make the product hierarchy available for consumption outside the application.

    • Unless the hierarchy version is activated, it is not available for consumption outside the application.
    • An activated hierarchy version would have the status “Active” can be edited at later stages using the “Edit” option.

Step 3: Updating an existing hierarchy version

Consider the scenario where user wants to update an existing product hierarchy version, then user can use the “Edit” button available in the details page of any hierarchy version. Once an active product hierarchy version is Edited, the version being edited would kept with status “In Revision” until it is activated again, the previous active version would be consumed by the business processes till the same hierarchy version is activated.

Few restrictions are introduced with respect to the the options available for adapting the hierarchy structure or deactivation/deletion of a product hierarchy version once it is consumed subsequent business processes like Product Hierarchy assignment to Distribution Chain.

How to consume product hierarchy in Sales

Refer to below two blogs to understand the usage of product hierarchy in Sales scenarios:

  1. Using The Product Hierarchy Functionality in SAP S/4HANA Cloud 1911
  2. How to Use Product Hierarchies in Design Studio or Web Dynpro Apps

EKT :EKT_ProductHierarchies.pdf

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      Author's profile photo Sandeep Kumar
      Sandeep Kumar

      Much awaited feature, and thanks for highlighting the differences to ECC.

      Andrew Saunders : may be you can also add this link to the blog you posted on this topic.

      Author's profile photo Enda Fennelly
      Enda Fennelly

      Great article Sreelal , Thank you

      Author's profile photo Roshan Fernandies
      Roshan Fernandies

      Good document.,

      Is there a way we can upload the Product Hierarchy in mass.My customer 1000+ product hierarchies to be migrated from ECC .Manage Product Hierarchy’ app is not usable.Since only one hierarchy version can be imported in a single step using the application "Manage Product Hierarchies".

      Author's profile photo Sreelal Soman
      Sreelal Soman
      Blog Post Author

      Hi Roshan Fernandies,

      Migration option for importing multiple hierarchies would be available soon with future releases. This would be available through standard migration cockpit itself.

      Author's profile photo Anup Nair
      Anup Nair

      Thanks for Sharing!

      Author's profile photo Anil Kumar R
      Anil Kumar R

      Helpful, thanks for sharing!

      Very well documented.

      Author's profile photo Sai Giridhar Kasturi
      Sai Giridhar Kasturi

      thanks for sharing

      Author's profile photo Zhiping Yu
      Zhiping Yu

      Thanks for Sharing this.

      Author's profile photo Priyank Kumar Jain
      Priyank Kumar Jain

      Great info!

      Author's profile photo Adrien DEMONTLUC
      Adrien DEMONTLUC

      Very nice feature

      Is there any plan to release this product into the on premise version?

      Author's profile photo Sreelal Soman
      Sreelal Soman
      Blog Post Author

      Hi Adrien,

      Currently this is only available in Cloud, OP strategy is yet to be planned.

      Author's profile photo Thomas Karner
      Thomas Karner

      Hi! Are there any plans after 2 years to make Universal Product Hierarchy also available in S4 OnPremise?

      Author's profile photo Sreelal Soman
      Sreelal Soman
      Blog Post Author

      Hi Thomas Karner,

      Currently this is only available in Cloud, OP strategy is yet to be planned.

      Meanwhile could you please answer the following:

      • Which all business processes would be needing this new hierarchy for your customers
      • Who all are the customers that would be needing this
      • What are the current limitations or problems that you face with classical hierarchy
      Author's profile photo Thomas Karner
      Thomas Karner

      Hi Sreelal Soman

      the issue is as following:

      Customers with S/4 OP who are using SAC (SAP Analytics Cloud) for Integrated Financial Planning would like to use the delivered business content from SAP.

      Unfortunately SAP business content is only supporting universal product hierarchy and there is no out-of-the-box solution from SAP to transfer classical hierarchy from S/4 OP to SAC to use it for planning. The same happens for live-reporting with SAC based on S/4 OP.

      In the meanwhile we have already some customers who are demanding seamless integration for hierarchies and after more then 2 years there is no solution on the horizon 🙁




      Author's profile photo Adrien DEMONTLUC
      Adrien DEMONTLUC

      Thank you for this information, would have been very nice for our case

      Author's profile photo Sreelal Soman
      Sreelal Soman
      Blog Post Author

      Hi Adrien DEMONTLUC ,

      You are welcome.

      Meanwhile could you please answer the following:

      • Which all business processes would be needing this new hierarchy for your customers
      • Who all are the customers that would be needing this
      • What are the current limitations or problems that you face with classical hierarchy
      Author's profile photo Former Member
      Former Member

      Hi, may I know up to how many levels of sub-nodes can this feature support?

      Author's profile photo Sreelal Soman
      Sreelal Soman
      Blog Post Author

      Currently there is no technical limitation put regarding the number of levels/sub-nodes.

      Author's profile photo Harald Freudendahl
      Harald Freudendahl

      Is there a way to import the MARA-PRDH from EEC6 which is custmized into 2 hierachie levels into S4HC?

      Hierarchie 12341234 one string should be in S4HC two levels Material der 1234 > 1234

      Author's profile photo Sreelal Soman
      Sreelal Soman
      Blog Post Author

      Hi Harald Freudendahl ,

      There is no direct mapping options available for the PRDHA to new S4HC Product Hierarchy data model.  But could consider using these 2 migration objects
      Product hierarchy - SAP Help Portal

      Product hierarchy assignment - SAP Help Portal

      Author's profile photo BRUCE PARISOT


      On premise, we would use this hierarchy in webdynpro report as old hierarchy can not be used to aggregate appropriately.
      For instance, our group would like to use flexible- Sales analysis and use the hierarchy.
      It could also be used for pricing.
      Also, it could be used for planning processes, scheduling prod orders...but I have other solutions available.