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customr heirarchei

can anyone explain me customer heighrarchi???

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    author's profile photo Former Member
    Former Member
    Posted on Jan 31, 2008 at 08:44 PM

    Hi Friend,


    Customer hierarchies are available in Sales and Distribution, so that you can create flexible hierarchies to reflect the structure of customer organizations. If your customer base includes multi-level buying groups, cooperatives, or chains of retail outlets, for example, you can create hierarchies to reflect the structure of these groups. Use customer hierarchies during sales order processing and billing for determining pricing and running statistics.

     A customer hierarchy consists of nodes.

     To create a customer hierarchy:

    1. Create master records for each node.

    2. Assign the nodes to each other.

    3. Assign the customer master records to the relevant nodes.

     Hierarchy nodes are only valid for a certain period of time. They may also be moved. If a node is moved, the system automatically reassigns all related nodes and customer master records.

    With customer hierarchies, you can assign price or rebate agreements to a higher level node. The agreements are then valid for customer¬ís at all subordinate levels to this node. You can create pricing condition records for each node indicated as relevant for pricing. If one or more nodes in the hierarchy path of a sales order contain pricing information, the system takes them into account automatically during pricing.

    'How to check'

    All the customizing is in SD/Master Data/Business Partner/Customers/Customers hierarchy

    All the customizing is in SD/Master Data/Business Partner/Customers/Customers hierarchy

    1) Define hierarchy type: just put and ID and a name to the new hierarchy.

    2) Set partner determination: if you want to user the hierarchy in price determination, then, in the orders, at the header level, you have to have a Partner Procedure with a partner function for each level. In the partner procedure, in each partner function you must indicate the source partner function. With this information, in the order, you obtain the business partner for each partner function.

    3) Assign account groups: you indicate which accounts groups are allowed for being part or your hierarchy.

    4) Assign sales areas: simple you indicate which sales areas are allowed in your hierarchy. (Here you can customize common sales areas, just for not having to build de hierarchy in all the different sales areas).

    5) Assigning hierarchy type for pricing: you indicate which classes of documents uses hierarchy in pricing determination.

    It is possible to maintain so called customer hierarchies. This might be useful when for example you create a condition discount for a customer that is part of such a hierarchy structure. All subnodes in the hierarchy below that customer, will thus receive the same discount.

    Customer hierarchy setup, firstly decide the hierarchy type to be used.

    The standard is type A.

    You can also assign a partner function to the customer so that the higher level customer in the hierarchy is copied into a sales order as a partner function - but you don't need that right?

    Next assign your customer account group to the hierarchy type. And enter the combinations that will be allowed for creating the hierarchy.

    You want to assign a ship-to to a payer. So enter the ship to account group and enter the payer account group as the higher level.

    You must also make an entry for permitted sales area assignments. So if you want to a hierarchy for customers in the same sales area then enter the sales area and enter the same one as the higher level sales area.

    All these settings can be found in the IMG. Under SD - master data - business partners - customers - customer hierarchy

    You use for example customer hierarchy when you have an company like Unilever and you agree both on a discount. Unilever does have different locations / businesses and you have to maintain the discount for all customers. If you use a customer hierarchy you can maintain the discount for the partner in the top of the hierarchy and in this way it will be valid for all customers in the hierarchy.

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    • Former Member


      With customer hierarchies you can now create flexible hierarchies to reflect the structure of customer organizations. For example, if your customer base includes multi-level buying groups, cooperatives, or chains of retail outlets, you can create hierarchies to reflect the structure of these groups. You use customer hierarchies in order and billing document processing for partner and pricing determination (including rebate determination) and for creating statistics.

      You can use customer hierarchies to assign price conditions and rebate agreements to one of the customer’s subordinate levels, to ensure that all subordinate levels are valid for the customer. For each node that you indicate as relevant for pricing, you can create condition records for pricing. If one or more nodes in a hierarchy path for a sales order contain pricing data, this is automatically taken into account in pricing.


      You can also use customer hierarchies for evaluations in profitability analysis (CO-PA) and in the Sales Information System (SIS):

      To evaluate customer hierarchies with the sales information system and in the profitability analysis, you can maintain the field Hierarchy assignment on the Marketing tab page in the customer master record for a hierarchy customer. Here you can maintain 10 features for hierarchy customers (HIEZU01 to HIEZU10). You can use these to evaluate hierarchies statistically with up to 10 levels. (Field catalogue VHIE)

      Note that the hierarchy assignment is statistical. If you change the customer hierarchy, you may need to change the hierarchy level manually in the customer master record in the Hierarchy assignment field.


      A customer hierarchy is a flexible structure consisting of customers. Each customer - with the exception of the uppermost customer - refers to another customer at a higher level in the hierarchy (known as a higher-level customer). Customers that are assigned to higher-level customers are known as dependent customers.

      To be able to display organizational elements, that are not independent partners, you can assign pure hierarchy nodes (account group 0012) in the hierarchy. Specific data can be assigned to a hierarchy node (for example, address, price conditions, rebate agreements) and this then applies to all subordinate customers.

      As all nodes in a hierarchy are time-dependent, you can adapt the customer hierarchy to changes in the structure of a customer at any time.

      • Customers can be reassigned in a hierarchy When reassigning a customer, all subordinate customers are moved with it

      • You can add new customers to a hierarchy When you assign a new customer to an existing hierarchy, all pricing data, that applies to the higher-level hierarchy node, is automatically copied from the customer

      • You can also remove customers from the hierarchy

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