Create Customer hierarchy (SD)

[Former Member]

Hi Friends,

Can you please explain how to create customer hierarchy in SD. (need detail flow)

[former_member550050]

Hi

Customizing Customer Hierarchy in SD

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 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

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.

customer hierarchy configuration

Following are the steps followed in exact config of customer hierarchy:

T-code: OVH1

1) DEFINE HIERARCHY TYPES:

IMG-SALES AND DISTRIBUTION-MASTER DATA-BUSINESS PARTNERSCUSTOMERS-CUSTOMER HIERARCHY---DEFINE HIERARCHY TYPES.

T-code: VOPA

2) Set partner determination for hierarchy categories:

IMG-SALES AND DISTRIBUTION-MASTER DATA--BUSINESS PARTNERS-CUSTOMERS

---

CUSTOMER HIERARCHY-SET UP PARTNER DETERMINATION FOR HIERARCHY CATEGORIES

T-code: OVH2

3) Assign Account groups:

IMG--SALES AND DISTRIBUTIONMASTER DATABUSINESS PARTNERSCUSTOMERSCUSTOMER HIERARCHY---ASSIGN ACCOUNT GROUPS

We assign the possible higher-level account groups to the account groups permitted for each customer hierarchy type. Therefore, both the valid account groups for each hierarchy type are defined and the higher-level account groups of the valid account groups

.

T-code: OVH3

4) Assign sales areas:

IMG--SALES AND DISTRIBUTIONMASTER DATA-BUSINESS PARTNERSCUSTOMERSCUSTOMER HIERARCHY-ASSIGN SALE AREAS

We assign sales areas to each other which allow you to determine whether a sales area uses its own customer hierarchies or shares one with another sales area.

T-code: OVH4

5) Assign hierarchy type for pricing by sales document type:

IMG--SALES AND DISTRIBUTIONMASTER DATABUSINESS PARTNERSCUSTOMERS-CUSTOMER HIERARCHY----ASSIGN SALE AREAS

Regards

Raja

[Former Member]

Dear Milind,

Following Links will definitely help you, some extent:

[Customizing Customer Hierarchy|http://www.sap-img.com/sap-sd/customizing-customer-hierarchy-in-sd.htm]

[Customer Hierarchy|http://sdconfiguration.blogspot.com/2008/02/customer-hierarchy.html]

[SD Config - Customer Hierarchy|]

Best Regards,

Amit

Note:

All the customizing is in SD/Master Data/Bussiness 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 informacition, in the order, you obtain the bussiness partner for each partner function.

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

4) Assign sales areas: symple you indicate wich 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 documentos 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.