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Customer Hierarchy
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.
Customer Hierarchy
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.
Customer Hierarchy
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.
Customer Hierarchy
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
Customer Hierarchy
The following should be configured
1. Customer Hierarchy Type
2. Organizational Data in a Customer Hierarchy
3. Account groups in Customer Hierarchies
4. Validity Data for assignments in Customer Hierarchies
5. Maintaining Customer Hierarchies
1. Customer Hierarchy Type
You can use the customer hierarchy type to determine the following:
• the purpose of a specific hierarchy (for example, pricing, statistics)
• which account groups are permitted in the hierarchy
• which organizational data is permitted in the hierarchy
Use:
• When you maintain a hierarchy, enter the corresponding hierarchy type.
• Customer hierarchy type A is provided in the standard system (standard
hierarchy). You can define your own hierarchy types
• When you create or maintain a hierarchy node, you must enter
organizational data. Just as with customer master records, you specify the
sales area: sales organization, distribution channel and division.
• The sales area data can differ.
• Customers maintained for different divisions may be assigned to the same
higher-level node.
2. Organizational Data in a Customer
Hierarchy
When you create or maintain a hierarchy node, you must enter
organizational data. Just as with customer master records, you
specify the sales area: sales organization, distribution channel
and division.
The sales area data can differ.
eg: Customers maintained for different divisions may be
assigned to the same higher-level node.
• you can determine which combinations of sales and
distribution areas are permitted for each customer hierarchy
type.
• When you assign a customer to a node, the system checks to
make sure the combination of sales area data is valid.
3. Account Groups in Customer
Hierarchies
The master records in the customer hierarchy are controlled
by their account groups. You can use the same account
groups for customer hierarchies as those used for partner
determination in sales and distribution.
In Customizing for sales and distribution you specify,
• which account groups are valid for a particular hierarchy
type
• which of these account groups are valid for higher-level
customers in the hierarchy
For example, you can exclude the possibility of defining
ship-to parties as higher-level nodes, since ship-to parties
play no role in pricing.
3. Account Groups in Customer
Hierarchies
For customer hierarchies there is also an individual account
group available: the account group Customer hierarchy
nodes (0012). In a master record for this account group you
can specify specific data that is only required for one node in a
customer hierarchy, that does not take on any active role in
order processing such as sold-to party, goods recipient etc.