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Author's profile photo Andrew Saunders

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

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      Author's profile photo Luca Biasotto
      Luca Biasotto

      Hi Andrew,


      many thanks for the video, it's really complete and interesting.

      We were waiting for the release of the Product Hierarchy to solve some reporting requirements, but as far as we understand it is intended primarily for pricing, as the Hierarchy is not defined as a standard COPA / market segment characteristic.

      A further point is related to the assignment of products to the nodes of the Product Hierarchy: we are not able to find a massive function to perform it and obviously when it comes to several thousand products the assignment of articles one by one is not feasible.

      Do you know if these features are foreseen in the roadmap?


      Best regards,


      Author's profile photo Jagadheeswara Raju B
      Jagadheeswara Raju B

      HI Andrew,


      We are implementing S/4 1909 on premise for BRIM. As you mentioned in the above blog product hierarchy  is  available in 1911 Cloud version. Which is not available in 1909 on premise. We have the requirement of implementing product hierarchy. Please suggest.




      Author's profile photo Adrien DEMONTLUC
      Adrien DEMONTLUC

      Very nice information, do you have any plan to release this product on this on prem world please?