Customer hierarchy in sap sd

There is a specific customer hierarchy which is existing in Sap sd. Let’s see how to do this in steps.

Firstly you can define the type of hierarchy. To do that you should put an ID and also a name for the new hierarchy. Then as the second step you should set the partner determination. If you need use that hierarchy in the determination of price, what you need to do is, in the header level which is in the orders you need to have a partner procedure which should include with partner function to each level. And inside partner procedure for every partner function you need to indicate the source partner function. So with this information in the order you will be able to get the business partner for every individual partner function.

After performing all those processes you need to assign the account groups. Here you must indicate to which accounts groups you have allowed to be part of the hierarchy.

Then after that you can assign the sales areas. Simply, you should indicate for which areas of sales are allowed in your hierarchy.

Then the assigning of the hierarchy type for pricing is done. Now here you willl be able to state the respective classes of the documents which will use this hierarchy in process of pricing determination. You are able to keep the customer hierarchies. And this may be very helpful if you are creating a condition discount to a particular customer which is a part of such a hierarchy structure. The sub nodes included in the hierarchy below that customer will be receiving the same discount.

Let’s see how to setup customer hierarchy setup. First of all decide the hierarchy type. The standard will be type A.

Then also you have the ability to assign a partner function for the customer so that customer in the topr level of the hierarchy can be copied into the sales order as a partner function .

As the next step, assigning the customer account group to the respective hierarchy type is done. Then you can enter combinations which will be provided for creating the hierarchy.

Then you need to assign a ship for a payer. Then here you willl be able to enter the ship for the account group and then entering the payer account group as the higher level can be done.

You should also create an entry to sales area assignments which are permitted. So if you need a hierarchy for customers in the same sales area you can enter the sales area and then enter the same one as the higher level sales area.

These settings can be seen in the IMG. It can be seen under SD, master data , business partners , customers and customer hierarchy

If we take an example for a customer hierarchy the company like Unilever and say you have agreed both for a discount. Unilever have different businesses and locations and then you will need to maintain the discount for every customer. The advantage when using a customer hierarchy is you have the ability to maintain the discount to the partner which is in top of the hierarchy and by following this way it will be valid for every customer who are inside this hierarchy.