Abstract: A method for creating product compatibility rules for an enterprise resource planning system. The method includes obtaining, by a processor, product compatibility rules defined for a plurality of products in a first standard format. The product compatibility rules define, for each product, a plurality of parameters and one or more configurations associated with each of the plurality of parameters which are at least one of compatible and non-compatible with the corresponding product. The method further includes generating, by the processor, a plurality of unique combinations of configurations for each product and identifying, by the processor, one or more products of the plurality of products for each unique combination of configurations. Further, the method includes creating, by the processor, product compatibility rules for the enterprise resource planning system by defining a relationship between the one or more products and each unique combination of configurations in a second standard format.