CUSTOMER HIERARCHY:
Customer hierarchies are available in Sales and Distribution, so that you can create flexible hierarchies to reflect the structure of customer organizations. If your customer base includes multi-level buying groups, cooperatives, or chains of retail outlets, for example, you can create hierarchies to reflect the structure of these groups. Use customer hierarchies during sales order processing and billing for determining pricing and running statistics.
 A customer hierarchy consists of nodes.
 To create a customer hierarchy:
1. Create master records for each node.
2. Assign the nodes to each other.
3. Assign the customer master records to the relevant nodes.
 Hierarchy nodes are only valid for a certain period of time. They may also be moved. If a node is moved, the system automatically reassigns all related nodes and customer master records.
With customer hierarchies, you can assign price or rebate agreements to a higher level node. The agreements are then valid for customer’s at all subordinate levels to this node. You can create pricing condition records for each node indicated as relevant for pricing. If one or more nodes in the hierarchy path of a sales order contain pricing information, the system takes them into account automatically during pricing.
'How to check'
All the customizing is in SD/Master Data/Business Partner/Customers/Customers hierarchy
All the customizing is in SD/Master Data/Business Partner/Customers/Customers hierarchy
1) Define hierarchy type: just put and ID and a name to the new hierarchy.
2) Set partner determination: if you want to user the hierarchy in price determination, then, in the orders, at the header level, you have to have a Partner Procedure with a partner function for each level. In the partner procedure, in each partner function you must indicate the source partner function. With this information, in the order, you obtain the business partner for each partner function.
3) Assign account groups: you indicate which accounts groups are allowed for being part or your hierarchy.
4) Assign sales areas: simple you indicate which sales areas are allowed in your hierarchy. (Here you can customize common sales areas, just for not having to build de hierarchy in all the different sales areas).
5) Assigning hierarchy type for pricing: you indicate which classes of documents uses hierarchy in pricing determination.
It is possible to maintain so called customer hierarchies. This might be useful when for example you create a condition discount for a customer that is part of such a hierarchy structure. All subnodes in the hierarchy below that customer, will thus receive the same discount.
Customer hierarchy setup, firstly decide the hierarchy type to be used.
The standard is type A.
You can also assign a partner function to the customer so that the higher level customer in the hierarchy is copied into a sales order as a partner function - but you don't need that right?
Next assign your customer account group to the hierarchy type. And enter the combinations that will be allowed for creating the hierarchy.
You want to assign a ship-to to a payer. So enter the ship to account group and enter the payer account group as the higher level.
You must also make an entry for permitted sales area assignments. So if you want to a hierarchy for customers in the same sales area then enter the sales area and enter the same one as the higher level sales area.
All these settings can be found in the IMG. Under SD - master data - business partners - customers - customer hierarchy
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