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

The Product Hierarchy is a highly regarded and requested functionality that has been added to S/4HANA Cloud with the 1911 edition.

This blog post is trying to be a bit different by demonstrating via a video the full setup, from configuration through to master data setup – required to begin using this new functionality in your S/4HANA Cloud system. Hopefully this makes it easy to follow along and test in your own system, and also shows how easily and quickly you can begin leveraging the innovation for your business needs.

The example is set against a (fictional) business objective. Since the video is a bit long, approximate time stamps of topics are shown below – please skip forward to any point of interest:

Click above for the video

Business Scenario

• Business Context & Objective – 0:20 to 2:00
• Overview of Planned Steps – 2:00 to 4:00

Hierarchy Setup

• Create Hierarchy Nodes – SSCUI – Configure Nodes for Product Hierarchies – 4:19
• Create Hierarchy – App: Manage Product Hierarchies – 6:24
• Assign Product Hierarchy to Sales Area – App: Manage Product Hierarchy Assignments – 8:45
• Assign Product Hierarchy to Products: – App: Manage Product Hierarchies – 9:45
• Stipulate Hierarchy Date Determination – SSCUI – Define Relevant Date for Product Hierarchy Determination – 11:30

Assign Hierarchy to Pricing Procedure

• Define New Access Sequence – SSCUI – 13:00
• Create New Condition Type – SSCUI – 15:30
• Create New Pricing Procedure – SSCUI – 16:30
• Update Pricing Procedure Determination – SSCUI – 18:18

Set Pricing Master Data

• Set pricing conditions: 19:12

Test Sales Document & Review Pricing

• Check Sales Order – With Pricing Error: 20:47
• Error Correction – Assign Product Hierarchy: 22:10
• Check Sales Order – Final Pricing: 22:33
• Sales Order – Final Output: 24:38

Thanks for your feedback!

For a more technical dive into the Product Heirarchy functionality, and its use in reporting – please take a look at this Blog Post on the S/4HANA Cloud Customer Community