Showing results for 
Search instead for 
Did you mean: 

Merchandise category vs article hierarchy vs product hierarchy in retail system

Former Member
0 Kudos

Hello SCN,

I have a quick question, I have read a lot of information but I couldn't find an answer, sorry for that...I don't have very clear the difference between merchandise category and article hierarchy and product category

In this system we are working with retail (IS) so we have to create the Merchandise category for our articles and according the documentation that I have read basically is very similar to the Material group in MM (is this correct?), in the company where I am they have brands and sub-brands and they have articles very similar, the only difference is that they belong to different brands I.E

My question is... is a good practice to create in the merchandise category Tshirt, Pants, Shorts Twice or more than twice depending in how many brands they are (I think is not the good idea)? or should be created just one time and if we want to display this information by brand should be created in the article hierarchy or product hierarchy?

Basically is how to obtain in a report the sales for t-shirts of Sub-brand1? or just the sales for other sub-brand

Please let me know if is clear my question

thanks 🙂

Accepted Solutions (0)

Answers (3)

Answers (3)

0 Kudos

Hi Vibhor,

Merchandise category it's as said by Andras something like Material group in ECC. Personally I would forget about the brand in merchandise category hierarchy. Article hierarchy is mainly used in planning like OPAC or PPW. Reporting from sales perspective can be always done by Sales chain, product hierarchy (as in ECC) or a bit more complex by characteristics. Sometimes good idea is to create sales org per brand but it's mainly depends on business requirements.

hope it helps



Former Member
0 Kudos

Thnaks for your answer it makes sense

Active Participant
0 Kudos

Hi Sergio

As per my understanding its not good practice to repeat a merchandise category under different hierarchy levels, reason being you will end up having large number of merchandise category and hierarchy level to plan and maintain. Its more a problem for growing business I guess. But if doing this is solving business purpose without and foreseeable issues then its fine.

As you already researched Article hierarchy is better way of doing this as its meant for the same purpose.

Alternately you can use characteristic and characteristic values assignment to merchandise category which will help you get required reporting.

Also if you are using Fashion component in you Retail system you will see Brand as one of the fashion attribute, which can be used as well.



0 Kudos

Hi Sergio,

Answering your question regarding the difference: the merchandise category and material group are technically identical, the difference is basically only the retail terminology.

The other questions could be answered probably by members working in the industry, what is their best practice.
But I think they do not create the same article multiplied due to belonging to different brands parallel.

Best regards,