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Author's profile photo Venkatakrishnan Subramani

Material creation with product hierarchy……..

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……

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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      Author's profile photo Gobinath Palsamy
      Gobinath Palsamy

      Very Useful blog

      Author's profile photo s anusha
      s anusha

      Hi venkata krishnan,

      Very useful post.

      Is there any way to automate this? For example,if new product is coming up and it needs to fit in the Hierarchy levels we created based on some pre defined logic? Or it should be done manually all the time? Please reply on this.