Watch the following video, which explains the use of class hierarchies in Variant Configuration.
We want to work with different configuration profiles with different characteristics.
What can we do? We have to use different class types.

You can create additional variant class types. You can also select a variant class type for each configuration profile.
Several active configuration profiles lead to a selection screen in the sales order under LO-VC. Is that wanted?
Several active configuration profiles lead to a noninfluenceable selection of a configuration profile in the sales order under AVC. Is that wanted?
Case 1:
Multiple classifications, one class type
If all classes, assigned to the configurable material, have the same variant class type, you can't select which characteristics of which class are to be displayed in more detail in the profile.
Case 2:
Several class types, one classification per class type
If the classes, assigned to the configurable material, have different variant class types, you can select a class directly in the profile by selecting a variant class type. The characteristics of a class are displayed.
Mixed forms of these two cases are also possible.
Organizational Area
We want to work with different configuration profiles with different characteristics.
What can we do? Working with LO-VC, we have to use Organizational Areas.
Organizational areas only have interface functionality; a required characteristic, for example, still has to be valuated.
Organizational areas have the authorization objects C_TCLS_BER (who sees which characteristic?) and C_TCLS_MNT (who can assign values to which characteristic if you're allowed to see it?). The following also applies here: Required characteristic must be valuated. If no authorization exists, the configuration can only be stored incompletely (status).
Customizing and Conversion
Customizing Classification System
The following video shows you the necessary steps inside customizing.
The class statuses and classification statuses are already defined in the SAP system. You can check the statuses and change them if necessary.
As for characteristics, you can also define groups for classes. You create class groups independently of the class type.
Customizing Variant Configuration
Following this menu path: in the SAP Reference IMG: → Logistics General → Variant Configuration
You'll find:
Conversion of a LO-VC Model to AVC
The conversion of a LO-VC model to AVC is done in the following steps:
You group models that are to be transformed at the same time in workspaces.
The LO-VC model is checked in advance (for any adjustments required).
The AVC model is created by copying LO-VC master data (and then any necessary adjustments).
A congruence check compares the results of the LO-VC model and AVC model.
By releasing the AVC model, the corresponding master data will be released and automatically configured with the AVC model in the future.
The transfer of the material variants involves an exchange of the configuration profiles from LO-VC to AVC.