Customer Hierarchy

Customer Hierarchy
Customer Hierarchy
A customer hierarchy is a flexible
structure consisting ofcustomers.
Each customer - with the exception of
the uppermost customer - refers to
another customer at a higher level in
the hierarchy (known as ahigherlevel customer). Customers that are
assigned to higher-level customers are
known asdependent 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 customers 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 purehierarchy 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 forhigherlevel customersin 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 groupCustomer 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.
If required, you can change the account group for a customer
in the customer hierarchy, for example, you can assign the
account group Sold-to party to a customer with account
group Customer hierarchy nodes , that cannot issue orders,
so that he can issue orders.
3a) Creating Customer Hierarchy

Nodes
You use customer hierarchy nodes as customers in a
customer hierarchy, if you require an element to which
data can be defined specifically for the customer
hierarchy (for example, pricing or rebate relevance) but
which does not take on an active role in order
processing such as for example, a goods recipient.
You can define restricted, customer hierarchy specific
data in the master record of a customer hierarchy node,
but no data that is necessary for overall sales and
distribution processing or for accounting.
In terms of creating and maintaining master data for
nodes in a hierarchy, you proceed just as you would
with customer master data.
4. Validity Data for assignments in

Customer Hierarchies
When creating or changing a hierarchy node, enter a
valid-from date. For example, a customer advises you
that the buying structure of his organization will change,
effective the beginning of next year. You want to
restructure the customer hierarchy in advance.
You maintain the hierarchy, changing the assignment of
nodes as necessary and entering the valid-from date that
corresponds to the change at the customer. Until that
time the existing node assignments continue to function
as before. In addition, you can also specify a valid-to date
for a node. If you leave the valid-to date blank, the
system automatically proposes 12/31/9999.
4a. Prerequistes
To be able to use customers for customer
hierarchies, you must have defined the
following in Customizing for Sales and
Distribution,
which account groups are permitted for
hierarchies
which account groups are assigned at a
higher-level in the hierarchy
which sales and distribution areas are
permitted for hierarchies
4b. Process Flow

You create master records for each customer, that you want to use in the
hierarchy.
Depending on the function the customers have in the hierarchy and in
order processing, create master records for Customer hierarchy nodes or
for the sold-to party, payer and so on. You can find further information in
Creating Customer Master Records.
In the customer master record you can indicate whether the customer is
relevant for pricing, rebate processing, profitability analysis (CO-PA) or
evaluations in the sales information system (SIS).
You create a hierarchy, in which you assign the hierarchy customers for
the higher-level customer.
You create master records for each customer, that you want to use in the
hierarchy.
Depending on the function the customers have in the hierarchy and in
order processing, create master records for Customer hierarchy nodes or
for the sold-to party, payer and so on. You can find further information in
Creating Customer Master Records.
4b. Process Flow

In the customer master record you can indicate whether the customer
is relevant for pricing, rebate processing, profitability analysis (CO-PA)
or evaluations in the sales information system (SIS).
You create a hierarchy, in which you assign the hierarchy customers
for the higher-level customer.
Normally the sold-to party or goods recipient are assigned to the
lowest hierarchy level. You can, however, also assign a sold-to party to
a node, that is at a higher level. For example, you could assign a
particularly large branch of a chain of retail outlets to the regional
office instead of to the local office.
You can maintain the hierarchy at a later date, by
assigning new customers (these customers are automatically assigned
a current validity date)
reassigning available customers
changing the validity period of a customer for the hierarchy
removing customers, if required, from the hierarchy
5. Maintaining Customer Hierarchies
Calling Up Customer Hierarchy

Creating Customer Hierarchies
Changing Customer Hierarchies
Removing Customers From the Hierarchy
Deleting an Assignment in a Customer
Hierarchy
Updating a Customer Hierarchy

Customer Hierarchy

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Customer Hierarchy

1. Customer Hierarchy Type

3. Account Groups in Customer

3. Account Groups in Customer

3a) Creating Customer Hierarchy

4. Validity Data for assignments in

4b. Process Flow

4b. Process Flow

5. Maintaining Customer Hierarchies

Calling Up Customer Hierarchy

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