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Former Member

Customer Hierarchy

Hi,

I am very new SD Module... I am trying to understand the flow of SD... I am not understanding the concept behing customer hierarchy.. i tried in the forum to get the basic knowledge.. but i did not get any good thread related to that.. Please let me know whats the purpose behind customer hierarchy???????????

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    author's profile photo Former Member
    Former Member
    Posted on Feb 26, 2009 at 09:49 AM

    Hi Sanu

    Suppose there is a Head office (A), under A, suppose there are two branches say B and C,under B suppose one regional office B1 is available and under C two regional office C1 and C2 are available.

    All are your customers as some time A (head office) purchases from you and sometime the other branches they do.

    Here, we make a hierarchy structure of the customer's organisation by which it becomes much easier for us to handle in Rebate discounts and other promotional discounts(hierarchy discount).

    Here, we need not have to create so many condition records when we give hierarchy discount.

    Suppose we want to give a discount to all the customer in this hierarchy, then we initiate at the highest level that is "A". So we create a discount condition record with head office ,so this discount will be applicable all the nodes/customer under A.

    Suppose, we want that the customer B should get some additional discount but not C.

    In that case we create a discount condition record with B, so that B and B1 will get the additional discount beside the cross regional discount received by others.

    With out hierarchy structure, we need to maintain so many condition record and in searching the appropriate condition record accesss sequence has to search by its principle (most specific to most general) which effects the system performance.

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    • Former Member

      So going by your explanation-if the discount is applied to the head office (Customer A) the discount then applies to all the sublevels right?

      Does the discount apply to customer A also or just to all the sub level nodes ex: Customer B, C, D.

      Because when I create the sales order for Customer B,C or D- the discount gets applied

      However, For customer A- the discount is missing in the sales order.

  • author's profile photo Former Member
    Former Member
    Posted on Feb 26, 2009 at 09:29 AM

    HELP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 26, 2009 at 09:30 AM

    Hi,

    Customer hierarchy is used to give price and rebate agreements applicable to all the sub ordinate levels.

    For example if you take Food world,It has branches all over India. here first we create Food world main office as main hierarcy and other branches as sub level nodes.

    First we

    Check the following link for better understanding.

    http://help.sap.com/saphelp_erp60_sp/helpdata/en/90/758534c960a134e10000009b38f83b/frameset.htm

    Regards,

    Hari Challa.

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