The following figure gives you a first overview of the Sales Order Set Processing.

The second figure gives you more understandings of the Sales Order Set Processing.

Sales Order with SET Processing
Pricing and Transfer of Requirements:
The BOM item group 0004 (in the standard system) has the effect that pricing and transfer of requirements take place for the individual components of the set (and not at the highest level).
Material requirements are only reported to PP if the configuration is complete and consistent.
A requirement is only created for the lower-level items that are relevant for sales. (These items are also entered in the sales order.)

Sales Order = SET Processing
Transfer of Requirements – $root
Item category group 0004 (in the standard system) means that requirements are transferred for the individual components of the set.
In the MRP run, the materials for which the independent requirement was created are considered as $root.
Selection conditions for BOM items of these and subordinate assemblies (vehicle and lift mast in the example before this) can refer to characteristics for the material of the assemblies that create independent requirements with $root. The valuation of the set material forklift isn't available in MRP.
The Following New Behavior Applies:
In SAP S/4HANA with AVC before release OP 2023 / Cloud 2302 with activated new behavior of "Bundling" with transaction VCH_NEW_BUNDLING (see SAP Note 3190519)
In SAP S/4HANA with AVC as of release OP 2023 / Cloud 2302 in general (that is, mandatory)
In the sales order, $root refers to the header material – the material for which the sales order was created only for exploding the BOM of the SET material. This consideration is irrelevant for the PP environment (planned order, production order) because the SET material doesn't appear here.
Configuration profiles for assemblies and components that trigger requirements, the valuation here's queried with $root. As a result, there's no longer a change regarding the meaning of the $root object between the sales order and processing in the PP environment (planned order, production order).
Configuration Scenario Sales Order – Focus Areas
- In the sales order, the following are configured interactively:
The header object and
In addition, all sales-relevant items, across any number of levels in the sales order
- The result is multiple lines in the sales order, connected to the main item.
- Pricing can be controlled either via main item level or subitem level. The transfer of requirements can only take place at subitem level.
Combinations of Configuration Scenarios

To select the configuration profile of a material, the system first searches for all active profiles. The $parent material is then checked.
If there's no $parent material (that is, you are in the header), all active profiles are taken into account.
If an AVC configuration profile exists, it has the higher priority and is selected automatically.
If there are several AVC configuration profiles, the following priority and the one with the highest priority are automatically selected.
Planned/production order without BOM explosion
Planned/Production Order with BOM Explosion
Sales Order (SET)
Order BOM
If only LO-VC configuration profiles exist, a profile selection screen is offered.
If a $parent material exists, all profiles that are not allowed in combination with the $parent profile are considered inactive and are therefore not offered.
Note the differences between LO-VC and AVC regarding the compatibility of configuration scenarios.
Note also that planned developments exist here:
Planned Production Order Scenario under Sales Order Scenario.
Order BOM scenario under Sales Order Scenario.
Possibility of Manual Changes for Sales Order Scenario.
Set in Set
The Sales Order scenario can also be combined with the Sales Order scenario. We have such, a so-called "set in set".



In our example, according to item category group 0004, an item category TAM was generated in the sales order for the materials set via set T-FCSET-ABOVESET and forklift T-FC97.
According to the standard settings in SD Customizing, no requirement is created with regard to these set materials.
In our example, the independent requirement is created for the top-level (possibly configurable) components that are outside the upper orange (gray) area. These materials represent the $root materials in MRP.