Skip to Content
author's profile photo Former Member
Former Member

customer hierarchy explanation

Could somebody provide important point about cusomer hierarchy that can be used in in the presentation.

we would give point for good points


Add a comment
10|10000 characters needed characters exceeded

Related questions

2 Answers

  • Posted on May 27, 2008 at 02:59 PM


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

    2) 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 informations, in the order, you obtain the business partner for each partner function.

    3) 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 sub nodes 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



    Edited by: sri nath on May 27, 2008 8:29 PM

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on May 27, 2008 at 03:01 PM


    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.

    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.

    Customer hierarchies are used to determine pricing and rebates in sales and billing documents.

    Customer hierarchies enable you to apply pricing and rebate agreements that are determined at a higher level than the customer.


    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.


    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.