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???????????
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.