SAP LO-VC and AVC – Variant configuration

SAP LO-VC · Advanced Variant Configuration (AVC) · SAP S/4HANA

Map complex product variants efficiently and reliably

Products with many variants pose particular challenges: different customer requirements have to be translated into technically valid product configurations, matching bills of material and end-to-end order and manufacturing processes.

E&S Swiss Consulting supports manufacturing companies in analysing, designing and optimising SAP variant configuration – from classic variant configuration (LO-VC) to Advanced Variant Configuration (AVC) in SAP S/4HANA.

Our focus is on practical configuration models and integration with sales, materials management and production.

Typical challenges with products with many variants

Variant configuration affects numerous business processes – from the sales order to manufacturing. Typical challenges are:

!  Complex product structures with many characteristic combinations

!  Dependencies and configuration rules that are hard to maintain

!  Incorrect or incomplete product configurations

!  High effort to maintain characteristics and classes

!  Insufficient alignment between sales, engineering and production

!  Errors when deriving bills of material and routings

!  Challenges in developing existing LO-VC models towards AVC

We help analyse existing configuration models and develop sound improvements.

Our SAP variant configuration consulting services

Classic variant configuration with SAP LO-VC

Classic SAP variant configuration (LO-VC) enables rule-based modelling of configurable products. We support the design and optimisation of:

  • Characteristics and classes
  • Configuration profiles
  • Object dependencies and dependency knowledge
  • Variant bills of material
  • Routing and operation selection
  • Configuration processes in the sales order
  • Integration with production planning

We focus on traceable rules, maintainable models and a consistent mapping of business requirements.

Advanced Variant Configuration (AVC) in SAP S/4HANA

SAP Advanced Variant Configuration (AVC) offers ways to develop variant configuration further in the SAP S/4HANA environment. We support companies with:

  • Analysing existing LO-VC configuration models
  • Evaluating business requirements for AVC
  • Designing suitable AVC models
  • Reviewing dependencies and configuration logic
  • Planning and carrying out functional tests
  • Integration with related SAP processes
  • Evaluating a possible move from LO-VC to AVC

Whether and to what extent existing models can be adopted or adapted depends on the functions and rules used and on the respective SAP release.

Integrating variant configuration and production

A product configuration only delivers its full benefit when the information derived from it flows reliably into the downstream business processes. We look in particular at integration with:

  • Sales and sales order processing
  • Bills of material and routings
  • Material requirements planning
  • SAP PP and SAP PP/DS
  • Production and process orders, where relevant in the respective scenario
  • Materials management and procurement

The goal is an end-to-end process from product configuration to shop-floor manufacturing.

LO-VC and AVC compared

AspectLO-VCAVC
PositioningClassic SAP variant configuration, also available in SAP S/4HANAAdvanced variant configuration in SAP S/4HANA
ModellingCharacteristics, classes, configuration profiles and object dependenciesComparable modelling basis with an extended processing approach and specific functions
Existing modelsProven configuration models, often grown over many yearsExisting models can continue to be used depending on the functions involved; compatibility and adaptation needs must be checked
IntegrationIntegration into SAP business processes, especially sales, production and materials managementIntegration into supported SAP S/4HANA processes, depending on the scope of functions
Decision criteriaRequirements, existing models, supported functions and system landscapeRequirements, model compatibility, supported functions and target architecture
Simplified comparison.

The right configuration solution depends on the business requirements, the existing models, the SAP S/4HANA release and the supported business processes.

SAP LO-VC

Classic variant configuration

Analyse, maintain and optimise existing configuration models.

SAP AVC

Advanced Variant Configuration

Evaluate new requirements and possible uses in SAP S/4HANA.

Check transition and compatibility individually

Both approaches are used for rule-based configuration of products with many variants. However, they differ in their technical basis and in some of the functions they support.

The choice of approach should be based on a functional and technical evaluation. AVC is not automatically a direct replacement for every existing LO-VC scenario.

Our consulting approach

01

Analyse

Examine existing product structures, configuration models, rules and process integration.

02

Design

Define target models, configuration logic and integration requirements.

03

Implement

Support modelling, configuration, testing and go-live.

04

Develop further

Simplify existing models, keep them maintainable and adapt them to new product and business requirements.

What are the benefits of optimised variant configuration?

Well-structured SAP variant configuration can help to:

✓  Reduce incorrect product configurations

✓  Make complex product variants easier to manage

✓  Make configuration rules more transparent

✓  Simplify the maintenance and further development of product models

✓  Connect sales and production more closely

✓  Improve the derivation of bills of material and manufacturing information

✓  Reduce manual coordination between departments

The specific improvement opportunities depend on product complexity, existing models and the SAP system landscape.

Variant configuration and SAP production planning

Products with many variants place particular demands on production planning. Depending on the configuration model, the selected characteristics influence material requirements, manufacturing structures and the resources needed.

E&S Swiss Consulting therefore combines variant configuration consulting with an understanding of SAP PP, SAP PP/DS and the related manufacturing processes.

Experience with complex industrial processes

Our consulting takes into account the requirements of manufacturing companies, especially with complex product structures, customer-specific manufacturing and integrated SAP processes.

We combine process understanding with SAP expertise and a practical view of implementation.

Frequently asked questions about SAP variant configuration

What is SAP LO-VC?

SAP LO-VC is the classic variant configuration for rule-based modelling of configurable products. It uses characteristics, classes, configuration profiles and object dependencies, among other things.

What is SAP AVC?

SAP Advanced Variant Configuration is a variant configuration solution in the SAP S/4HANA environment. It supports rule-based product configuration and offers AVC-specific functions.

Can an existing LO-VC model be transferred to AVC?

That depends on the specific model, the object dependencies and functions used and the SAP release. A functional and technical review is therefore required before a transition.

What role does variant configuration play in production planning?

The product configuration can determine which components, manufacturing steps and resources are required for a sales order. It therefore influences material requirements planning and downstream manufacturing.

Let us develop your variant configuration further

Would you like to optimise existing LO-VC models, evaluate the use of AVC or improve the integration of your product configuration with production planning?

E&S Swiss Consulting supports you with analysis, design and implementation.