The production version defines the various techniques that can be used to produce a material. A material may have several bills of material (BOMs) that determine the components used in its production. The production process can also be described in various Routings/Recipes (task lists). Production version is mandatory to declare production considering correctly all the cost related to that production.

Prerequisites: Understand very well all the other plant master data objects - BOM’s and Rate routings including resource/work centers settings.
From material FI/CO views training: determines which alternative BOM is used together with which Routings/Recipes (task lists) to produce a material or create a master production schedule.
For one material, you can have several production versions for various validity periods, lot-size ranges, production lines, etc.

Production version = BOM (or Bill Of Materials is basically a list of components that are consumed into the production of a semi-finished or finished product, and their quantities) + Routing/Recipes (The rate routing (in repetitive manufacturing) or Recipe (in Batch manufacturing) represents the production process of the flow. It describes which operations are carried out to produce a material as well as the time necessary, the sequence used, and the operational costs deployed. Both represent the Fix cost component of the manufacturing cost. In batch manufacturing (WP1), the Recipe is also used to absorb the energies and utilities)

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