Product Hiererchy and Allocation

Question

Hi Guys,
What exactly is the use of Product Hiererchy and Allocation.
Why do we use these transactions OV1Z, OV2Z, OV3Z, OV4Z and V/76.
Pls explain me on this concept.
Points will be definitely given.
Thanks & Regards
Srikkanth

Answer 1

Check this [LINK|http://help.sap.com/saphelp_46c/helpdata/en/77/1a39516e36d1118b3f0060b03ca329/content.htm]
Define Product Hierarchies
In this step, you define product hierarchies which you can use for statistical analysis or pricing, for example, or you can change their structure. The product hierarchy groups materials by combining different characteristics. Each characteristic is represented by a specific product hierarchy level.
Example
A product hierarchy can be structured as follows:
Level Example Description
1 00001 Electrical appliances
2 00002 Household appliances
3 00000003 Wet appliances
In this example, a dishwasher belongs to product hierarchy 000010000200000003.
Standard settings
In the standard system, the product hierarchy consists of up to 3 levels. The first and second levels have 5 digits and the third level has 8. The maximum number of digits is 18 and the maximum number of levels is 9.
You can define hierarchy nodes at the individual levels of the product hierarchy.
From the initial screen you can branch to the following steps:
Product hierarchy structure
In the Data Dictionary, you can change the structure of the product hierarchy (e.g. the number of levels).
Data entry/display
Here you define the display of the product hierarchy and the format of the accompanying text.
Product hierarchy
Here you define your product hierarchies.
Field catalog for pricing
Here you make fields of the product hierarchy structure available for use in pricing.
Field catalog for the Logistics Information System
Here you make fields of the product hierarchy structure available for use in the Logistics Information System.
Actions concerning the product hierarchy structure
Structuring the product hierarchy
The product hierarchy can be structured via DDIC structure PRODHS. In the standard system, a product hierarchy can be created with up to three levels. The individual levels can contain the following number of digits:
Level number of allowed digits
1 5
2 5
3 8
This can be changed as of Release 3.0, where it is possible to extend the maximum number of levels to 9.
If you want to change the standard setting of PRODHS, e.g. you want to change the number of levels, proceed as follows:
1. Create an appropriate domain in the Data Dictionary (type CHAR with the required length).
2. Assign these domains to the standard data elements PRODH1, PRODH2, ..., PRODH9.
Please note that you should use these standard data elements.
3. Change the structure PRODHS by creating or deleting fields with reference to the data elements.
Choose ZZPRODHN as field name, where n is the position of the field in the structure PRODHS.
Example
You want to change the structure of the product hierarchy from 5/5/8 digits to 5/5/5/3. Proceed as follows:
Create the following domains:
ZPRODH3 with length 5, category CHAR,
ZPRODH4 with length 3, category CHAR,
Change structure PRODHS:
Strucutre PRODHS in the standard system:
Structure Fields Data element Category Length
PRODHS ->
PRODH1 PRODH1 CHAR 5
PRODH2 PRODH2 CHAR 5
PRODH3 PRODH3 CHAR 8
Changes according to example:
Structure Fields Data element Category Length
PRODHS ->
PRODH1 PRODH1 CHAR 5
PRODH2 PRODH2 CHAR 5
PRODH3 PRODH3 CHAR 5
ZZPRODH4 PRODH4 CHAR 3
Note
The structure PRODHS and the data elements PRODH1, ..., PRODH9 are only provided by SAP with Release 3.0 and can be changed by the customer from this point onwards.
Conversion routines for INPUT/OUTPUT
The product hierarchy can be assigned to a conversion routine. The name of the conversion routine is PRODH. The output template can be defined in Customizing (see below).
The separators used in the template are not allowed for maintaining the product hierarchy nodes.
Example:
If the template is _____/_____/__________
The symbol "/" cannot be used when maintaining the product hierarchy nodes. In this case, the following entry would not be allowed: 123456/79012345678
Text concatenation
The description of a product hierarchy can be determined via concatenation, if required.
Proceed as follows:
1. Determine the node preceding the current node
2. Concatenate the description of the subsequent node with the description from the preceding node.
The text concatenation is valid for the entire product hierarchy, the concatenated text has a length of 20. Text concatenation can be activated/deactivated in Customizing (see below).
Note
Make sure during text concatenation that the text of the product hierarchy does not come from table T179T. In this case function module RV_PRODUKTHIERARCHIE_TEXT_GET is available.
Allowed symbols for product hierarchy nodes
If you have stored a template for the conversion routine, the separators in the template are not allowed.
Actions concerning data entry/display
You can make two settings regarding the layout of the product hierarchy and the format of the product hierarchy text:
1. Enter a template for displaying the product hierarchy. This template defines the length of the individual levels and the separators.
Note that the character used to separate the levels in the template cannot be used in the product hierarchy nodes.
2. The description of a product hierarchy node can be determined by concatenation if required.
If you activate text concatenation, the text for one level is added to the description of the higher level and then output. The text of the first level appears at the beginning followed by the text of the second and third levels. Text concatenation applies to the complete product hierarchy. The concatenated text can have a maximum of 20 characters.
Do not activate text concatenation if you only want to issue the description of the hierarchy levels created for these levels when the product hierarchy was defined.
Actions concerning the product hierarchy
The product hierarchy can be freely defined and include up to three levels. The SAP System checks the entry in the field product hierarchy during master data maintenance and copies it to the SD document. The separators used in the template cannot be used in the product hierarchy.
Note
Via a matchcode you can search specifically for material master records with a product hierarchy.
Analyze the product hierarchies in your organization and define their representation in the SAP System.
1. Assign a characteristic value to the individual levels of your product hierarchy: a 5-character value to levels 1 and 2, and an 8-character value to level 3. The level number is determined automatically.
A product hierarchy node encompasses a characteristic value of a maximum of 18 characters.
2. Enter a description for the product hierarchy.
Actions concerning the field catalog for pricing
The product hierarchy can be used for functions in pricing. Then the fields of the product hierarchy structure must be entered into the field catalog for pricing.
Enter the fields of the product hierarchy in the field catalog.
Actions concerning the field catalog for Logistics Controlling
The product hierarchy can be used for statistical analyses in the Logistics Information System. The fields of the product hierarchy structure must then be entered in a field catalog for the Logistics Information System.
Enter the product hierarchy in a field catalog. You can refer to field catalog 'VPHI', which displays the standard settings.
IMG->Logistic General->MM->Setting for Key fields->Define Relevant to SD->Define Product Hierarchy->Maintain product hierarchy
Regards