Thelow-level codein SAP S/4HANA (visible in MD04 or calculated during MRP) indicates the deepest level at which a material appears in any BOM across all products, starting from 000 (finished goods) downward. Its key features are:
* To determine how costs are rolled up by product costing(B): In Product Costing (CO-PC), the low-level code ensures costs are calculated bottom-up, starting with the lowest-level components (e.g., raw materials) and rolling up through assemblies to the finished product (transaction CK11N). This guarantees accurate cost aggregation.
* To determine the sequence in which materials are planned in MRP(C): During MRP (MD01/MD02), the system plans materials in ascending order of low-level codes (lowest first), ensuring dependent requirements for lower-level components are calculated before higher-level assemblies, avoiding planning gaps.
Priority of alternative components in ATP(A) is managed by BOM alternative item strategies (e.g., 100% check), not low-level codes.Use of sub-items in BOM(D) is defined by item categories (e.g., "R"), not influenced by low-level codes. This is per SAP's planning and costing logic.