Customer Hierarchy

[former_member208541]

Hi,

I have never done customer hierarchy. I have follwoing two questions.

Q1) I know that nodes are created but I need to know whether there is only one sold to party created as a node and the other nodes are not created as sold to party rather they are created as hierarchy nodes. Is it that high leevl customer always use account group "Hierarchy node" and low level customer use account group "sold to party"

am i right, why it is so??

Q2) I have one issue where a low level customer 200545004 in Sales org 1405 is being assigned to a high level customer no 20049924 in S ales organisation 1405. However the system is not allowing this and giving the message that sales area assignment is not permiited and so the customer cud not be assigned.

my question is if the above two customers are of same sales area (1405/00/00), then why such an error ??

regards

sachin

[Former Member]

Hi Sachin,

Q1)

The account groups that can be used in the hierarchy are all defined by yourself. If you want the highest node to be one in customer group 0012 is is ok - if you have your company as a DEBI with a certain customer number in your system and you want this to be the highest node it is fine . We have a 0012 named "total" as the highest node and after that we have put our customers´ subsidiaries in company group nodes named Schmidt group total and so on...

You defne this in SPRO - SD - Master data - Customers - Customer Hierarchy - Assign Account Groups.

Make also sure that you have added all customer account groups you want to use in the "Function Assignment" (....Customer Hierarchy - Set Partner Determination for Hierarchy Types - Set Up Partner Determination for Customer Master)

Q2)

As far as I remember this problem should not be there anymore when the above data ist correct and completed. But as I customized the basics of our customer hierarchy 2 years ago and since then I might have forgotten. lt me know if you still got the problem after fixing Q1.

Regards,

[Former Member]

Hi,

I hope this information will help you.

• Introduction

• Define hierarchy types

• Set partner determination for hierarchy categories

• Assign account groups

• Assign sales areas

• Assign hierarchy type for pricing by sales document type

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Introduction

• 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).

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Define hierarchy types

The hierarchy type controls the following points:

• It specifies the purpose of a certain hierarchy.

• It specifies the default partner function. The initial or default partner function is the lowest level of a customer hierarchy, which is linked with other hierarchy nodes during customer hierarchy maintenance.

CustHType Name PartFunct Name

A Pricing Hierarchy 1A Customer Hierarchy 1

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Set partner determination for hierarchy 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

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Assign account groups

• You have to 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 from assigning a ship-to party above a sold-to party.

CustHType Name Acct Group Description HgLvAcctGr Description

A Pricing Hierarchy 0001 Sold-to party 0001 Sold-to party

A Pricing Hierarchy 0001 Sold-to party 0003 Payer

A Pricing Hierarchy 0001 Sold-to party 0012 Hierarchy node

A Pricing Hierarchy 0002 Ship-to party 0001 Sold-to party

A Pricing Hierarchy 0002 Ship-to party 0003 Payer

A Pricing Hierarchy 0002 Ship-to party 0012 Hierarchy node

A Pricing Hierarchy 0003 Payer 0003 Payer

A Pricing Hierarchy 0012 Hierarchy node 0012 Hierarchy node

A Pricing Hierarchy 0120 Intercompany Sold-to 0001 Sold-to party

A Pricing Hierarchy 0120 Intercompany Sold-to 0012 Hierarchy node

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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.

CustHType Sales org. Distr. chl. Division HgLvSlsOrg HLDstrCh HgLvDivis.

A BE01 01 01 BE01 01 01

A BE20 10 01 BE20 10 01

A BE30 01 01 BE30 01 01

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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 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:

o You must have marked the hierarchy node as relevant for pricing in the master record.

o Condition records must exist for the hierarchy node(s).

o 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

• All normal sales orders are linked with hierarchy type "A" for pricing.

REWARD POINTS IF THIS HELPS .....

Regards,

Harsh