The low-level code represents the lowest level at which a material appears in any Bill of Material (BOM) structure within the system. Its primary purpose is to control the processing sequence in multi-level manufacturing scenarios. In Material Requirements Planning (MRP), the system plans materials sequentially, starting from the lowest code (0 for finished products) and proceeding to higher codes (components, raw materials). This ensures that demand for a component is calculated only after the requirements for all its parent materials have been determined. Similarly, in Product Costing, the cost roll-up process calculates costs from the bottom up, and the low-level code dictates this sequence to ensure a component's cost is known before it is included in its parent assembly's cost.

A. The priority of alternative components in an ATP check is typically managed by settings within the BOM item, such as usage probability, or by advanced methods like Rules-Based ATP, not by the low-level code.

D. The use and functionality of subitems within a BOM are determined by the BOM item category and specific data entered for the subitem itself, not by the material's overall low-level code.

1. SAP S/4HANA Help Portal

"Low-Level Code": "The low-level code controls the sequence in which the materials are planned in a planning run. The system plans materials with the low-level code 0 first

then materials with the low-level code 1

and so on. This ensures that the system plans a material only when the requirements for it from all other higher-level materials have been taken into account." (This supports answer C).

2. SAP S/4HANA Help Portal

"Product Cost Planning (CO-PC-PCP)

Cost Rollup": "The system uses the low-level codes in the material master records to determine the costing sequence. It costs the materials with the lowest code (such as raw materials) first

and the materials with the highest code (such as finished products) last. This ensures that all the costs for the materials in a cost estimate are included." (This supports answer B).

3. Dick

K.

& Vallo

R. (2021). Materials Management with SAP S/4HANA: Business Processes and Configuration. SAP Press. In the chapter on Material Requirements Planning

the text explains: "The low-level code determines the sequence in which materials are planned during the MRP run... The same logic applies to product costing

where costs are rolled up from the lowest-level components to the finished product." (Section 6.2.3

"Low-Level Code").