Creation of new product hierarchy and products in SAP CRM.

Dear all,
please help with resolving of following issue:
In CRM system base hierarchies were replicated from R/3 system with materials. Current requirement is to create new materials in CRM directly (as standalone scenario). As far as I understand, I have to create new hierarchy with required list of set types in order to allow creation of products in CRM directly (product type = material). Can anybody describe changes in the system step by step, what should be changed and where?
As a result I need to have a possibility to create products in CRM directly for sales scenario processing.
Thank you in advance!

Hi Jorge,
thank you so much for your reply!
Here what I tried to do:
1. I created new category in hierarchy R3PRODSTYP, added 3 set types: COMM_PR_MAT, COMM_PR_SHTEXT, COMM_PR_UNIT as basic set types.
2. In the SPRO - Cross-Application Components - SAP Product - Settings for Product Type - Number Assignment - Define Number Ranges for the Product Type "Material" I found my new product category is unassigned, so I assigned it to the "CRM Products" group.
3. Farther I tried to create a new product for created category in CRM Web UI, but was not able to find it in the Base category search field. All categories correctly displayed from R3PRODSTYP, but my new category is absent. What can be the reason of category absence? Btw, it cannot be found even when I try to display whole hierarchy in Web UI, however, in SAP GUI, it can be seen via tcode comm_hierarchy.
Here is the setup of hierarchies in the system:
I have no idea how to check #3 "Ensure the hierarchy is assigned to CRM application".
Can you please suggest, what should be changed in addition? Thank you!

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