Customer Hierarchy-discounts

[former_member185462]

Hi all,

This is the first type i am trying customer hierarchy .Also i have read various documents but i didn't  get clear idea on customer hierarchy type.

To be clear my idea is in a sales order for a sold to party we have different ship to party (3 SH) ,for each ship to party we need to provide,hierarchy discount (discount will be 10%,15%,20%).I want to map this. Kindly clarify

1)OVH1

In this stage do i want to create 3 different hierarchy type ,in order to represent 3 different Ship to parties as each get different discount pattern.

2)OVH2

In this stage we have customer hierarchy type ,account group,higher level account group.

Here all three ship to party belong to same account group

In the a/c group place which a/c group we have to add-Ship to party a/c group?

What is the role of a/c group-0012 here.

what will come in Higher level a/c group.

3)OVH3

Here we have Customer hierarchy type ,sales area,higher level sales area

what is the use of this.

Here SP & SH belongs to same sales area,hope so Higher level sales area & sales area belong to same.

4)OVH4

Sales document type to hierarchy type for pricing.

So if any assignment is made here for OR,we will have only one hierarchy type assigned to it.

5)V-12

What is the purpose of creating a customer with account group 0012,do i want to create a customer here.

If the customer is to be created ,it should be created with same sales area as that of previously mentioned SP,SH sales area

6)VDH1

What settings i have to do.

Kindly help me out, i have not tried this earlier.Studying various documents is helping me clarifying doubts.

Thanks,

Pradeep

[mahendra_jani3]

Hi Pradeep,

1)OVH1
In this stage do i want to create 3 different hierarchy type ,in order to represent 3 different Ship to parties as each get different discount pattern.

As per your requirement to provide various amount of discount specific to SH, Customer Hierarchy are not matching to the requirement.

Now, based on your Hierarchy structure you should decide how many Hierarchy Type you need to use. Just keep in mind, only 1 Hierarchy type you can use for pricing.

2)OVH2
In this stage we have customer hierarchy type ,account group,higher level account group.
Here all three ship to party belong to same account group
In the a/c group place which a/c group we have to add-Ship to party a/c group?
What is the role of a/c group-0012 here.
what will come in Higher level a/c group.

If you have multiple account groups and you need to assign them in Hierarchy then you can show here ki which account group will become Higher Level Account Group.

Your Ship To Party Discount example is not matching Customer Hierarchy, so it will not match the point.

3)OVH3
Here we have Customer hierarchy type ,sales area,higher level sales area
what is the use of this.
Here SP & SH belongs to same sales area,hope so Higher level sales area & sales area belong to same

Your understanding is correct about this point.

If your Higher Level customer may have different Sales Area then Your lower level customer then you will have to assign Higher and Lower Level Sales Area.

4)OVH4
Sales document type to hierarchy type for pricing.
So if any assignment is made here for OR,we will have only one hierarchy type assigned to it.

Your understanding is correct about this point. You can use only one Hierarchy type for pricing in Order Type.

5)V-12
What is the purpose of creating a customer with account group 0012,do i want to create a customer here.
If the customer is to be created ,it should be created with same sales area as that of previously mentioned SP,SH sales area

0012 Account Group is Hierarchy Node which represents any Logical or real person of the business.

About Sales Area, It can be same or different Sales Area depending upon requirement. You have already done Sales Area assignment earlier.

6)VDH1
What settings i have to do.

Here you can assign, respective customers to Each other. Higher Level customer to Lower Level Customers.

Regards,

MJ.

[shashi_thakur]

Hi Pradeep,

Hierarchy based Discounts, as per my view should be used when you want to provide the same discount to all the concerned Sold-to-Parties assigned to the same Chain/Hierarchy without having to maintain the condition records for each individual sold-to-party/etc. However, based on your requirement-it seems you wish to provide 3 different discount rates to three different Ship-to-Parties. Why not then maintain the condition records at the Ship-to-Party level. What is the rationale behind deciding to go for Hierarchy based discounts?.

Regards,

Shashi

[former_member185462]

Why not then maintain the condition records at the Ship-to-Party level. What is the rationale behind deciding to go for Hierarchy based discounts?.

I want to try Hierarchy discounts,if any good documents which could be  understandably ,would be very much helpful. I searched for one such in Google ,but i could not get right document,that is why came up with one each example,which may also be helpful for freshers like me.

[amit_tunara]

Hi Pradeep,

The first thing you need to do is create a main customer with account group 0001. Now create 3 ship to party customers with account group 0002. In these ship to party customers, you have to add the main customer as sold to party.

In all 4 customers, in General data and in Marketing Tab, you have a field called Hierarchy Level. If you do not have this field, you can change the field status for these two account groups and bring the field in marketing tab (SPRO: Financial Accounting (New) -> Accounts Receivable and Accounts Payable -> Customer Accounts -> Master Data -> Preparations for Creating Customer Master Data -> Define Account Groups with Screen Layout (Customers)). Once this field is available in marketing tab, assign hierarchy 0 to the main customer and rest 3 customers with hierarchy 1. This completes the master data settings.

Now go to transaction VDH1n and give your hierarchy type and validity period. Mention your main customer in the selection screen. This will make sure the main customer is a root of this hierarchy. Execute and go inside the VDH1n screen. Select the root node and click on Create Assignment to add a ship to party as a branch node of main customer. Repeat the same for 3 ship to parties.

For giving them discount, you can create a customized incoterms and use incoterm in access sequence (K033) for your discount condition type. As per your requirement you can assign the incoterms to your ship to parties and discount can be populated based on condition records.

I hope this will help you.

Regards,

Amit