SAP S/4HANA uses the low-level code to determine the sequence for material requirements planning. The low-level code represents the lowest level at which a material appears in any Bill of Material (BOM). The planning run processes materials sequentially by their low-level code, starting with code 0 (e.g., finished products) and proceeding to higher-numbered codes (e.g., raw materials). This hierarchical approach ensures that all demands for a material are known before the system plans the material itself, guaranteeing correct net requirements calculation down the entire BOM structure.

A. Source list: This defines approved sources of supply for a material. It determines where a material is procured from, not the sequence in which it is planned.

B. MRP group: This groups materials to assign common planning control parameters (e.g., planning strategy). It influences how a material is planned, not its sequence relative to others.

D. Quota arrangement: This distributes procurement quantities among different sources of supply. It controls the proportion of supply from various sources, not the planning order.

1. SAP Help Portal - Low-Level Code: "The low-level code represents the lowest level of usage of a material within all product structures... During the MRP run

the system plans the materials in the order of their low-level codes

starting with low-level code 0."

URL: https://help.sap.com/docs/SAPS4HANAON-PREMISE/f899ce30af9044299d573ea30b533f1c/4d7fe05314894208e10000000a174cb4.html (Version 2023)

2. SAP Help Portal - The Logic of the Planning Run: "The system plans all materials with the low-level code 0 first

then all those with low-level code 1

and so on. This ensures that the dependent requirements for a component are created before the component itself is planned."

URL: https://help.sap.com/docs/SAPS4HANAON-PREMISE/f899ce30af9044299d573ea30b533f1c/4d7fe35314894208e10000000a174cb4.html (Version 2023)