This video explains the concept of Production Version in SAP Materials Management, focusing on its creation, validation, and its mandatory status in S/4HANA. The key points discussed in the video are:

1. Understanding Production Version: Production Version is a way to produce a product with a combination of Bill of Materials (BOM) and routing. It denotes different ways by which a company can produce a material. For instance, a material may have one routing but multiple BOMs, or vice versa.
2. Mandatory Status of Production Version: In the ECC version of SAP, the Production Version is mandatory for process and repetitive manufacturing but not for discrete manufacturing. However, in S/4HANA, the Production Version is mandatory for all, including discrete manufacturing.
3. Creation of Production Version: The presenter demonstrates the creation of a Production Version in SAP using the transaction code C223. The Production Version can be quantity range specific or validity period specific.
4. Validation of Production Version: After creating a Production Version, it’s important to validate it. The validation process includes checking the details of the task list and BOM. If the details are correct, the system will show a green check mark.
5. Locking a Production Version: A Production Version can be locked, which means it cannot be used for production and planning purposes. This feature is useful when a particular Production Version is not required.
6. Mass Creation of Production Version: In S/4HANA, a program (CSE38) is available for mass creation of Production Versions.