Hi,
Customer Heirarchy representation of complex customer structures. For example, you can display the regional structure of a buying group as a customer hierarchy. The customer hierarchy contains pricing information that is valid for all customers in the hierarchy.Customer hierarchies represent complex customer structures in the system and are used for the organizational structures of buying groups or chains of retail outlets, for example.
A customer hierarchy consists of individual hierarchy nodes which are allocated hierarchically to each other on different levels to produce lower-level and higher-level nodes. The structure of the customer hierarchy can be kept flexible and and adapt to change at any time by means of the option to move hierarchy nodes dynamically.
The customer hierarchy function in the R/3 system is carried out using the partner concept. The individual nodes are defined as partners and linked to a higher level partner.
During sales order and billing processing, customer hierarchies are used in pricing to take into account every aspect relevant to pricing and rebates for customers with a complex group and association structure in particular.
For example, if a sales order is edited for a customer who is allocated to a customer hierarchy relevant for pricing, the relevant hierarchy path, which displays the chain of hierarchy nodes to which the initial hierarchy node is related, is determined automatically. If condition records exist for a higher-level node, pricing is carried out with reference to the conditions available there.
The hierarchy nodes of a customer hierarchy are created as customer master records with account group (0012). The structure of the hierarchy results from allocating the hierarchy node master records. It is also possible to create customers with different account groups as hierarchy nodes (for example, 0001 for the sold-to party).
If you want to make your own settings for customer hierarchies, you must edit the following points:
Define hierarchy types with default partner function
Define allowed account group allocations for each hierarchy type
Allocate sales areas to each other
If necessary, allocate the hierarchy type relevant for pricing for each sales document type
Then check the partner functions to determine whether they suffice for the hierarchy levels you require and, if necessary, create further partner functions
Transaction: OVH1--Define Hierarchy Types
Only create a new hierarchy type if you:
need your own evaluations for customer hierarchies or
need different hierarchies for different business transactions.
The R/3 System uses the partner concept to realize the customer hierarchy function. Individual points are defined as partners and connected with a link to a higher-level partner.
The hierarchy type controls the following points:
It specifies the purpose of a certain hierarchy.
It specifies the default partner function.
2.Set Partner Determination For Hierarchy Categories
PATH-- SPRO-IMG-SALES AND DISTRIBUTION-MASTER DATA-BUSINESS PARTNERS-CUSTOMERS-CUSTOMER HEIRARCHIES-
SET PARTNER DETERMINATION FOR HEIRARCHY CATEGORIES.
When making settings for customer hierarchy, you must not only take hierarchy category into account. You must also consider higher-level partner functions which are maintained in partner determination.
Depending on hierarchy category, special partner functions are determined during order processing for each node on the hierarchy path. Starting with the initial partner function (in standard versions such as 1A), higher-level partner functions are determined and assigned to nodes in the customer hierarchy path.
Partner functions 1A - 1C have been defined in the standard release with the initial partner function appearing on the lowest level.
If you wish to use more than three customer hierarchy levels, you must first extend the partner functions (Table TPAR). Keep in mind that the system can process only up to 26 hierarchy levels.
Note
Use at least the same amount of higher-level partner function levels as you use customer hierarchy levels. During path determination and price determination only the same amount of customer hierarchy levels are taken into account as there are higher-level partner function levels available. This is why there may be some remaining customers not taken into account.
Standard settings
In the SAP standard system, there is a hierarchy category as well as three partner functions which are set for the customer hierarchy and are available for you to use.
1. If necessary, create additional partner functions in order to use additional hierarchy levels.
2. Assign the account groups to the partner functions.
The path to the account group assignment is: Partner functions -> Environment -> Account group function assignment.
3. Maintain a partner determination procedure and assign order types and and billing types. You should also make the following settings:
a) Cannot be changed
b) Mandatory function blank
c) Access: B for customer hierarchy
3. Assign Accounts- OVH2
you 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.
This will prevent the system assigning a ship-to party above a sold-to party.
4. OVH3-Assign Sales Areas
In this step, you assign sales areas to each other which allows you to determine whether a sales area uses its own customer hierarchies or shares one with another sales area.
5. OVH4- Assign Hierarchy Type For Pricing By Sales Document Type
In this step, you can assign a hierarchy type relevant for pricing for each sales document type. This way you can define the sales document types for which pricing data is taken into account if the data was determined on a level higher than the customer.
For every hierarchy node which is selected as relevant for pricing, you can create condition records. During pricing, the customer hierarchy allows the use of price and rebate agreements which were determined on a level higher than the customer. If one or more hierarchy nodes in the hierarchy path of a sales order contain pricing data, these are automatically taken into account in the sales order during pricing.
Requirements
If you want the pricing data of one or more hierarchy nodes in a hierarchy path to be taken into account automatically during pricing, the following requirements must be fulfilled:
You must have marked the hierarchy node as relevant for pricing in the master record.
Condition records must exist for the hierarchy node(s).
You must check whether the partner functions in the system are sufficient for the hierarchy levels which you require. If necessary, create new partner functions.
Actions
Transaction -VDH1- Display Customer Heirarchy
Kindly please let me know If you need any more information on this.
Regards
Ram Pedarla
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