Mastering Variant Configuration (AVC) in SAP S/4HANA: The Complete Guide

In industries like manufacturing, automotive, and engineering, businesses frequently deal with complex, configurable products. Each customer might request a unique combination of features, dimensions, or materials. Managing such variability using standard tools can be time-consuming and error-prone. That’s where Variant Configuration (VC) comes in — an essential component of SAP that enables mass customization of products without creating thousands of material masters.

With the transition to SAP S/4HANA, SAP has introduced a more powerful engine called Advanced Variant Configuration (AVC). This modern tool simplifies and enhances how configurable products are managed, helping companies offer greater flexibility to customers while maintaining control and accuracy on the backend.

What is Variant Configuration (VC)?

Variant Configuration (VC) is an SAP feature that enables the efficient management of highly customizable products without creating separate material numbers for each variation. It allows businesses to define a single configurable material (KMAT) with selectable characteristics, such as size, color, or components, tailored to individual customer requirements. VC simplifies complex product modeling through configurable bills of materials (BOMs), routing, and rule-based logic, ensuring accurate production, pricing, and order fulfillment while reducing data maintenance and enhancing product flexibility in sales and manufacturing.

This helps:

• Simplify master data
• Reduce complexity
• Improve product accuracy
• Enhance customization without losing control

Typical industries using VC include machinery, vehicles, electronics, and furniture, where products are highly configurable.

Key Concepts in Traditional VC

Before understanding AVC, let’s recap the core elements of classic Variant Configuration in ECC:

• Configurable Material (KMAT): A material type that can have different configurations.
• Characteristics (CT04): Defines the features or properties of the product (e.g., color, size, engine type).
• Classes (CL02): Groups characteristics logically to assign to KMAT.
• Configuration Profile (CU41): Defines how a material can be configured (e.g., when and how the configuration takes place).
• Dependencies: Rules or logic that control valid combinations (e.g., if color is red, engine must be Type A).
• Super BOM / Super Routing: Holds all possible components or operations for a product, selected based on configuration.

Introduction to Advanced Variant Configuration (AVC)

With SAP S/4HANA, SAP introduced Advanced Variant Configuration (AVC) training to address limitations in the classic VC engine and align with modern business requirements. Why AVC?

• Performance improvements with in-memory computing (SAP HANA)
• Real-time pricing and product configuration
• Intuitive UI for configuration (Fiori-based)
• Better integration with SAP CPQ (Configure Price Quote)
• Support for multi-level configuration and 3D visualization
• Enhanced dependency management and modeling tools

AVC is built to provide more flexibility, accuracy, and scalability, especially for complex configurations and digital transformation.

AVC vs. Classic VC – Key Differences

Feature	Classic VC	Advanced VC (AVC)
UI	SAP GUI	Fiori-based modern UI
Performance	Slower for complex models	Optimized for HANA
Rule Modeling	Limited expressions	Graphical and script-based (constraint engine)
Integration	Standalone in ECC	Integrated with SAP CPQ, Commerce Cloud
3D Visualization	Not supported	Supported (via VC model integration)
Maintenance	Complex for large models	Simplified tools and logic with AVC

Core Components of AVC in S/4HANA

1. Product Model

Replaces the traditional KMAT approach. It centralizes all configuration logic (characteristics, classes, constraints) into one object. This helps reduce redundancy and confusion.

2. Characteristics & Classes

Still used in AVC but now enhanced with better UI support and easier navigation. Characteristics describe the product’s options (e.g., screen size, color), and classes group them.

3. Configuration Profile

Configuration Profiles are created using transaction CU42 or through the Fiori app. In AVC, the configuration profile has improved options to support complex logic and integration.

4. Constraints and Rules

This is where AVC shines. AVC uses the Constraint Engine, allowing you to define:

• If-Then conditions
• Mathematical expressions
• Table-based logic These can be defined using a visual modeler, which is more user-friendly than traditional dependency syntax.

5. Pricing Integration

AVC supports direct integration with SAP Pricing Configuration. Price logic can be controlled through variant pricing and can even handle complex calculations or value-based pricing.

6. Integration with SAP CPQ & Commerce

You can push your configuration model into SAP Commerce or CPQ platforms. This allows customers to self-configure products online and receive accurate quotes and lead times.

Key Transactions and Fiori Apps for AVC

Transaction / App	Purpose
CU42	Maintain Configuration Profile
PMEVC	Product Modeling Environment for VC
F2090	Manage Product Models (Fiori)
F2089	Simulate Configuration
CU50	Configure KMAT (simulate sales order config)
CU50	View Dependency Net

SAP recommends using PMEVC or the Fiori apps instead of older GUI-based tools when working with AVC.

Steps to Implement AVC in S/4HANA

Step 1: Master Data Preparation

• Create Characteristics (CT04)
• Create Class and assign characteristics (CL02)
• Create Material Master (KMAT or Product Model)

Step 2: Define Configuration Profile

• Use CU42 or Manage Configuration Profiles app
• Assign class to the profile
• Set up dependencies and strategy

Step 3: Create Super BOM and Routing

• Add all possible components/operations
• Use object dependencies (procedures, selection conditions)

Step 4: Modeling in PMEVC

• Define constraints, value assignments
• Build logic rules using constraint editor

Step 5: Simulation and Testing

• Use Fiori app or CU50 to simulate various configurations
• Test pricing, compatibility, and output structure

Step 6: Integration (Optional)

• Push the configuration to SAP Commerce, CPQ, or 3D Visual Enterprise if needed

Benefits of AVC in S/4HANA

• Fiori-based interface and visual modeling tools enhance usability for both business users and developers.
• With HANA’s in-memory processing, configuration and pricing are executed faster — ideal for real-time product selection.
• AVC supports complex product models and advanced constraints without performance lag.
• AVC seamlessly integrates with SAP CPQ and Commerce Cloud, enabling online product configuration and quoting.
• Fewer material numbers, centralized configuration models, and intuitive modeling reduce master data maintenance.

Use Cases for AVC

Multisoft’s Advanced Variant Configuration (AVC) in SAP S/4HANA online training is particularly valuable for industries that manufacture highly customizable products. In the automotive sector, AVC enables customers to select different engines, colors, interiors, and add-on features while ensuring compatibility and pricing accuracy. In industrial manufacturing, companies use AVC to configure machinery or equipment based on size, power, safety standards, and application-specific requirements. Electronics manufacturers benefit by allowing customers to customize components such as memory, processors, screen size, and accessories when building devices like laptops or mobile phones. The furniture industry utilizes AVC to offer products with variable dimensions, materials, finishes, and accessories, ensuring precise delivery of tailor-made items. AVC also supports e-commerce and CPQ platforms, allowing customers to configure and visualize products online with real-time pricing. By streamlining configuration, reducing errors, and enhancing customer satisfaction, AVC empowers businesses to deliver personalized solutions efficiently across sales, production, and fulfillment processes.

AVC in Cloud and On-Premise

AVC is available in:

• SAP S/4HANA On-Premise
• SAP S/4HANA Cloud
• SAP CPQ / SAP Commerce Cloud

This allows businesses to use AVC as a central configuration engine across platforms, supporting direct-to-customer and B2B sales models.

Challenges and Considerations

Implementing Advanced Variant Configuration (AVC) in SAP S/4HANA certification comes with its own set of challenges and considerations. One major challenge is the learning curve associated with transitioning from classic VC to AVC. Teams familiar with legacy systems need adequate training to understand the new modeling environment, constraint engine, and Fiori-based tools. Additionally, setting up a robust product model requires significant initial effort in planning, testing, and data management. Poorly maintained or inconsistent master data can lead to misconfigurations and operational inefficiencies. Integration with SAP CPQ or Commerce Cloud also demands careful coordination to ensure accurate product representation across platforms.

Performance tuning, especially in complex multi-level configurations, may be required for optimal system behavior. Furthermore, certain advanced features may involve licensing considerations, which need to be evaluated during project planning. Overall, a successful AVC implementation hinges on a clear strategy, expert involvement, and strong governance around data, configuration rules, and system design.

Conclusion

Variant Configuration with AVC in SAP S/4HANA is a game-changer for businesses offering customizable products. With powerful modeling tools, intuitive UIs, and seamless integration capabilities, AVC simplifies the complexity of product configuration while enhancing user experience and operational efficiency. Whether you’re migrating from classic VC or starting fresh, AVC provides a solid foundation for digital product configuration — ready for modern, omnichannel business models.

For any business aiming to lead in personalized offerings without increasing backend chaos, Advanced Variant Configuration in SAP S/4HANA is the way forward. Enroll in Multisoft Systems now!