1:n product substitution in SAP S/4HANA Public Cloud

[Lauretkortman]

Dear community, 

I have an request to create a product substitution from one product to multiple products in SAP S/4HANA Public Cloud. Product A (original product) --> Products (B+C+D) (combined substitution product). 

I know that it is possible to go from A-->B-->C-->D and if you have limited stock on B & C for example it wil give you B,C,D as substitutes of A, but this is not my request. 

I want A to be substituted by a combination of product B,C,D always (not dependent on the amount of stock) 

So if the stock situation is A: 20 PC, B: 20 PC, C:20 PC, 😧 20 PC and I order 30 of A, 

I do not want 20 PC of B & 10 PC of C (like it works now), but I want 10 PC of B, 10 PC of C and 10 PC of D. 

Do you know if there is a way to make this work with product substitution?

(I also want to make it easy to adjust the distribution of the products (1/3 B +1/3 C+1/3 D --> 1/6 B+1/6 C+2/3 D))

[DequanXu]

Hello,

1. To achieve the kind of product substitution you are describing, where Product A is always substituted by a combination of Products B, C, and D in equal measure regardless of stock levels, you will need to use SAP S/4HANA’s product substitution features with specific configuration.

Steps to Configure Product Substitution

1. Create Substitution Groups:

   • Use the ‘Manage Substitution Groups’ app to create a substitution group Supply Chain - Using Groups in Product Substitutions that Groups B, C, and D can share.

2. Define Substitution Controls:

   • Use the ‘Manage Substitution Controls’ app to assign the substitution group to a control instance.*

3. Configure Product Substitution:

   • In the ‘Manage Substitutions’ app, specify Product A Supply Chain - Manage Substitutions and define an equal division substitution rule to distribute the demand among Products B, C, and D.
   • Set the substitution to not traverse further substitutions in the chain by using an exit indicator.*

4. Set Conversion Factors:

   • Ensure you set the numerator and denominator for conversion Supply Chain - How to Create and Configure a Product Substitution such that one unit of Product A substitutes equally for one unit each of Products B, C, and D.*

5. Activate and Test:

   • Activate your substitution settings and perform a test by creating a sales order to check if the substitution rules distribute the order quantity as desired.

This setup should allow you to specify a direct substitution that forces Product A to be equally replaced by a combination of Products B, C, and D without depending on stock levels, by ensuring that all substitutes are considered a single output rather than sequential alternatives.*

2. To substitute Product A with a combination of Products B, C, and D while allowing easy adjustments to the distribution ratio, follow these steps:

Steps to Configure Product Substitution

1. Create Substitution Groups:

   • Use the ‘Manage Substitution Groups’ app to create a substitution group that includes Products B, C, and D.

2. Define Substitution Controls:

   • Use the ‘Manage Substitution Controls’ app to assign the substitution group to a control instance.

3. Configure Product Substitution:

   • In the ‘Manage Substitutions’ app, How to Create and Configure a Product Substitution specify Product A and create substitution rules for Products B, C, and D.
   • Define the ratios for the substitution. Initially, set it to 1/3 B, 1/3 C, and 1/3 D.

4. Set Conversion Factors:

   • Use conversion factors to distribute demand proportionally. Example: If you want an equal split, use 1:1:1 for the numerator.

5. Activate and Test:

   • Activate your substitution settings and perform tests by creating orders to verify distribution among B, C, and D.

Adjusting Distribution Ratios

• When needed, adjust the distribution from 1/3 B, 1/3 C, and 1/3 D to 1/6 B, 1/6 C, and 2/3 D by changing the conversion factors.

  • Modify the numerator and denominator in conversion settings.
  • Update the substitution rules to reflect the new desired split.

• This flexibility allows you to dynamically change the proportions without altering the underlying substitution framework. Substitutions

By following the above configuration, Product A can be systematically substituted by varying proportions of Products B, C, and D based on business needs and inventory levels.

Best regards,

Dequan Xu