Customer hierarachy

[Former Member]

Hi All,

could you please about Customer Hierarchy?

why we are using customer hierarchy?

what is use of Product Hierarchy?

Advance thanks

Ananya

[Former Member]

Hi,

I will attempt to give a short answer.. however, this needs reading and analysis based on your requirements.

Customer Hierarchy

This is to assist pricing and / or reporting. Could also be used for other applications like outputs etc to 'roll up' records.

You may use customer hierarchy in order to reflect the structure under which the customer is transacted in order to assist in reporting or pricing. E.g you may have a hierarchy structure that places the sold to party based on your market segment. SAP allows 10 levels of Hierarchy to be assigned to a Sold to customer. An example of a sample hierarchy is as follows:

NA Sales Organization

Eastern Sales Segment

Chain Customers

Retail Customers

Sold to Party

The advantage here is that the customer hierarchy can be captured for every transaction. Also, customer hierarchy is date dependent.. hence, you could define yr hierarchy and change it effective a certain date.

A similar approach exists for product hierarchy

Hope this is useful.

Regards