Customer Hierarchy in SAP SD Tutorial 07 April 2020 - Learn Customer Hierarchy in SAP SD Tutorial (6643) - Wisdom Jobs India PDF

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CUSTOMER HIERARCHY - SAP SD 
« Previous Topics Next Topics »

Introduction To Sales
 Customer Master  Material And
Master
Distribution
(https://www.wisdomjobs.com/e- (https://www.wisdomjobs.com/e-
university/sap-sd-tutorial-245/customer- university/sap-sd-tutorial-
Introduction To Sap
master-6626.html) 245/material-master-6649.html)
(https://www.wisdomjobs.com/e-
university/sap-sd-tutorial-
 Running A Consistency Check  Product Hierarchy
(https://www.wisdomjobs.com/e- 245/introduction-to-sap-
university/sap-sd-tutorial-245/running-a- 6499.html)
university/sap-sd-tutorial-245/product-
consistency-check-6596.html) hierarchy-6657.html)
First Steps In Sap
 Setting Up A Factory Calendar  Partner Determination
(https://www.wisdomjobs.com/e- university/sap-sd-tutorial-
university/sap-sd-tutorial-245/setting-up-a- 245/ rst-steps-in-sap-
university/sap-sd-tutorial-245/partner-
factory-calendar-6594.html) 6507.html)
determination-6696.html)
Easy Access Menu

You may need to map the client’s organizational hierarchy in SAP. In the case of
large customers, there could be various regional o ces 245/easy-access-menu-
that order from you
6508.html)
independently. Hence, each one of them could be a separate customer number in
the system, yet there could be requirement to map themThe

intoCustomizing Menu
a group. Often prices
or rebates are determined at the level of the parent node of the hierarchy and apply
to the entire family. This requirement is ful lled by the customer hierarchy func
245/the-customizing-menu-
tionality. 6510.html)
The Basic Sales Cycle

The customer hierarchy is a grouping of customers in a exible organizational
structure. At each level you can specif y the higher-level university/sap-sd-tutorial-
customer and thus build a
multilevel structure. Any speci c data (such as the price245/the-basic-sales-cycle-

record, rebate agreements,
and so on) is maintained at a higher-level node and then6512.html)
ows down to all the
dependent nodes in the tree. A validity period is attachedHelp Menu

to the hierarchy so that if
there is any change to the structure, it can be made effective from a speci c date.
Partner determination also plays a key role in re ecting the complete hierarchy in
245/help-menu-6519.html)
sales documents. Once a customer is entered in a salesDatabase
document, SAP can trace
Tables
all the higher-level nodes in its hierarchy up to the apex node.
Creating a Customer hierarchy 245/database-tables-
6521.html)
Before you set up a hierarchy, always create an organizational chart where you plan
Data Browser
the hierarchy and gather the following information:
What are the customer numbers that need to be linked?
245/data-browser-
What is the hierarchical relationship between these customers?
6522.html)
Do I need to set up any additional nodes in the hierarchy? (Nodes may be
required to set up intermediate grouping levels to Abap Dictionary
complete the picture.)
What are the account groups of all these customers?(https://www.wisdomjobs.com/e-
Which sales areas are these customers assigned to? university/sap-sd-tutorial-
Which sales document type would require this hierarchy?
245/abap-dictionary-
Which price and rebate conditions would depend on the hierarchy?
6523.html)
Managing Customization
Prereq uisite Steps
Changes
The following are the master data steps you will need to(https://www.wisdomjobs.com/e-
take before you can create
a hierarchy:
245/managing-
customization-changes-
Step 1: Create Customer Master Records
6526.html)
You should create customer master records for each of the customers you plan to
Enterprise Structure
link together in the hierarchy.
https://www.wisdomjobs.com/e-university/sap-sd-tutorial-245/customer-hierarchy-6643.html 1/9
4/7/2020 Customer hierarchy in SAP SD Tutorial 07 April 2020 - Learn Customer hierarchy in SAP SD Tutorial (6643) | Wisdom Jobs India
Step 2: Create Hierarchy Nodes Sap Sd Overview

☰ (https://www.wisdomjobs.com/) (https://www.wisdomjobs.com/e-
To complete the logical setup of a customer hierarchy, you sometimes need to
Search for Jobs... de ne hierarchy nodes . These are not actual customers245/sap-sd-overview-
but logical grouping levels. 
6541.html)
A hierarchy node is set up as a customer with account group 0012. You can use V
Setting Up The Enterprise
D01 or XD01 and specify the account group there. Alternatively, there is a special
Structure
code, V-12, to set up hierarchy nodes. The path is SAP` Menu > Logistics > Sales and
Distribution > Master Data > Business Partners > Hierarchy Node.The procedure is
245/setting-up-the-
the same as creating a customer master. In the sales billing view, there is a
enterprise-structure-
provision to activate relevance for price determination and rebates.
6542.html)
Creating a hierarchy node Setting Up The Sales

Organization
245/setting-up-the-sales-
organization-6544.html)
Con guring A Distribution

Channel
245/con guring-a-
distribution-channel-
6554.html)
Con guring A Division

Creating the Customer Hierarchy university/sap-sd-tutorial-
245/con guring-a-division-
Once you have completed all the prerequisites, you can proceed to set up the
6560.html)
customer hierarchy. Use this menu path: SAP MenuLogistics Sales
Setting Up AAnd
Sales Area
DistributionMaster DataBusiness PartnersCustomer Hierarchy Edit (VDH1N).You
can also launch this transaction from within a customer university/sap-sd-tutorial-

master (VD02 or XD02) via
245/setting-up-a-sales-area-
Environment Customer Hierarchy.
6567.html)
Step 1: Specify Hierarchy Type De ning A Common

Distribution Channel And
On the Process Customer Hierarchy screen, you set up aCommon
hierarchy. The hierarchy
Division
type controls the purpose of the hierarchy (for example, (https://www.wisdomjobs.com/e-
pricing or reporting). It also
controls which account groups are permitted and which sales areas can use the
245/de ning-a-common-
hierarchy. Also, enter a validity period and the customer details on this screen.
distribution-channel-and-
common-division-
Process Customer Hierarchy screen
6571.html)
Setting Up A Sales O ce
245/setting-up-a-sales-o ce-
6579.html)
Setting Up A Sales Group

245/setting-up-a-sales-
group-6581.html)
Con guring Plants

Step 2: Set Up Hierarchy Links
245/contab
Now set up the hierarchy, one link at a time. On the Assignment guring-plants-
on the right,
6582.html)
specify the two customers to be linked, and click Transfer. The updated hierarchy
Setting Up A Storage
now appears on the left window. The Application Log tab, at the bottom right,
Location
signals whether the transfer was successful. If there is an error, you will nd the
details in the log. university/sap-sd-tutorial-
Maintain Customer Hierarchy screen 245/setting-up-a-storage-

☰ (https://www.wisdomjobs.com/) location-6589.html)
Setting Up A Shipping Point

Search for Jobs... (https://www.wisdomjobs.com/e- 
245/setting-up-a-shipping-
point-6590.html)
Setting Up A Transportation
Planning Point
245/setting-up-a-
transportation-planning-
point-6591.html)
Setting Up A Factory
Calendar
Customizing a Customer hierarchy university/sap-sd-tutorial-
245/setting-up-a-factory-
To customize the settings in the customer hierarchy, use the following menu path in
calendar-6594.html)
the customization menu:IMG Sales and Distribution Master Data Business Partners
Running A Consistency
Customers Customer Hierarchy. Check
Step 1: De ne Hierarchy Typ es (OVH1)
245/running-a-consistency-
The Hierarchy type controls the purpose of the hierarchy. All the major settings for
check-6596.html)
customer hierarchy are carried out at this level. In the setting, the SAP Standard
Master
Hierarchy type A is assigned to partner function 1A. This is Data
the apex of In
theSd
hierarchy. Customer Master

Linking a hierarchy type to a partner function
245/customer-master-
6626.html)
Customer hierarchy
Material Master
Step 2: Set Partner Determination For Hierarchy Categories
Partner determination is important to copy the hierarchy data to sales documents.
245/material-master-
By customizing partner determination, the system will search for all the partners in
6649.html)
the hierarchy of the customer in the order. They will appear as partners 1A, 1B, and
Product Hierarchy
so on, up to 1Z (26 levels). Use as many levels as (https://www.wisdomjobs.com/e-
required by your business. Partner Determination can be245/product-hierarchy-
set up for customer
master, sales documents, delivery, shipment and billing documents.
6657.html) You can select
one of these, from the menu. On the next screen, select the document type, and
Partner, Text, And
click Partner Functions In Procedure, 1A to 1D (four levels) have been
Output speci ed.
Determination
They are marked as nonchangeable, and the source is speci ed as B (denoting a
Partner Determination
customer hierarchy). (https://www.wisdomjobs.com/e-
Linking the hierarchy type to a par tner function
245/partner-determination-
6696.html)
Maintaining Text In Customer

Master Records In Sap
245/maintaining-text-in-
customer-master-records-in-
sap-6704.html)
Step 3: Assign Account Groups (OVH2)
Output Determination
To control the assignment of customers in a hierarchy, you can set rules for account
groups. For each account group, you specif y which other groups are allowed to be
245/output-determination-
at a higher level in the hierarchy. for the hierarchy type A, the account group Sold-To
6723.html)
Party (0001) can have another Sold-To Party group (0001), a PayerAnd
group
Tax(0003), or
Pricing
a Node group (0012) at a higher level. If you have de ned Determination
any custom account
groups, make sure this assignment is correct before you create your customer
Pricing
hierarchy. (https://www.wisdomjobs.com/e-
Assigning account groups to a hierarchy type
245/pricing-6743.html)
How To Determine Text In

Sap
245/how-to-determine-text-
in-sap-6748.html)
Availability Check,
Step 4: Assign Sales Areas (OVH3) Transfer Of
Requirements, And
Backorders
Having set controls between account groups, you now check which sales areas are
allowed at a higher level than others . If you need to link customers that belong to
Meaning And Relationship
different sales areas, you can set up controls on which sales area is allowed to be at
a higher level than the other. If a user tries to link together customers that belong to
245/meaning-and-
sales areas that are not permitted together in this setting, the system will issue an
relationship-6765.html)
error message stating that the sales area assignment is not permitted.
Customizing The Availability
Assigning sales areas to a hierarchy type Check And Transfer Of

Requirements
245/customizing-the-
availability-check-and-
transfer-of-requirements-
Step 5: Assign Hierarchy Type For Pricing By Sales Document Type (OVH4)
6775.html)
For each sales document type, you assign a hierarchy type using a screen. This is
Working With The Availability
the critical link in transferring a customer hierarchy to a sales
Checkdocument and in
determining pricing based on the hierarchy. (https://www.wisdomjobs.com/e-
Assigning a hierarchy type to sales documents for pricing
245/working-with-the-
availability-check-6781.html)
Sales
Sales Documents
CaseStudy—GalaxyMusicalInstrument S:Customer Hierarchy
One of our main customers is Melody International. Their245/sales-documents-
regional o ces and retail
6782.html)
outlets have placed ordersin the past, and each is registered in the database as a
Customizing
different customer. As part of a new agreement, we are offering Sales to all
a discount
Documents
Melody group companies. We also have to track our sales across this strategic
account. We use a customer hierarchy to structure the group companies.The top of
245/customizing-sales-
the hierarchy is a nodal company. We will control the prices for the groupatthis level.
documents-6783.html)
The regionalstores formthe second layer of the hierarchy. Any kiosks constitutethe
Common Sales Document
thirdlayer.If a sales order is placed by the kiosk customer, the entire hierarchy will be
Customizations
traced up to the apexofthe structure. The pricingagreement at the parent level will
be determined and applied to the order. university/sap-sd-tutorial-
245/common-sales-
document-customizations-
6801.html)
Types Of Sales Documents

245/types-of-sales-
documents-6811.html)
« Previous Topics Sales

Next Topics » Contracts
 Customer Master  Material Master
245/sales-contracts-
Search for Jobs... university/sap-sd-tutorial-245/customer- university/sap-sd-tutorial- 
master-6626.html) 6813.html)
245/material-master-6649.html)
 Running A Consistency Check Shipping And

 Product Hierarchy
(https://www.wisdomjobs.com/e- Transportation
university/sap-sd-tutorial-245/running-a- university/sap-sd-tutorial-245/product-
consistency-check-6596.html) The Shipping Process
hierarchy-6657.html)
 Setting Up A Factory Calendar  Partneruniversity/sap-sd-tutorial-
Determination
245/the-shipping-process-
university/sap-sd-tutorial-245/setting-up-a- university/sap-sd-tutorial-245/partner-
6817.html)
factory-calendar-6594.html) determination-6696.html)
Transportation Planning Ans
Execution
SAP SD Related Tutorials university/sap-sd-tutorial-

245/transportation-planning-
SAP CRM Tutorial SAP PM Tutorialans-execution-6821.html)
Goods Issue
university/sap-crm-tutorial-221.html) university/sap-pm-tutorial-247.html)
SAP MM Tutorial university/sap-sd-tutorial-
SAP HR Tutorial
(https://www.wisdomjobs.com/e- 245/goods-issue-6823.html)
university/sap-mm-tutorial-248.html) university/sap-hr-tutorial-249.html)
Billing
SAP PI Tutorial SAP Payroll Tutorial
Billing Process
university/sap-pi-tutorial-439.html) university/sap-payroll-tutorial-913.html)
245/billing-process-
6824.html)
SAP SD Related Interview Questions
Rebates
SAP CRM Interview Questions (https://www.wisdomjobs.com/e-
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university/sap-crm-interview- university/sap-sd-interview-
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questions.html) questions.html)
Payment Card Interface
SAP PM Interview Questions SAP MM Interview Questions
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245/payment-card-interface-
6826.html)
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university/sap-hr-interview-questions.html) And Revenue
university/sap-pi-interview-
Recognition
questions.html)
SAP LE and WM Interview Questions SAP Payroll Account

InterviewAssignment
Questions
university/sap-le-and-wm-interview- university/sap-payroll-interview-
245/account-assignment-
SAP GTS Interview Questions 6827.html)

(https://www.wisdomjobs.com/e- Revenue Recognition
university/sap-gts-interview-
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245/revenue-recognition-
6828.html)
SAP SD Related Practice Tests
Credit Management
Introducing Credit
Management In Sap
SAP CRM Practice Tests SAP SD Practice Tests
245/introducing-credit-
university/sap-crm-practice-tests-221- university/sap-sd-practice-tests-245-
management-in-sap-
327195) 326354)
6829.html)
SAP PM Practice Tests SAP MM Practice Tests Credit
Customizing
Management
university/sap-pm-practice-tests-247- university/sap-mm-practice-tests-248-
327260) 327559) (https://www.wisdomjobs.com/e-
SAP university/sap-sd-tutorial-
SAP HRSD Related
Practice Tests Practice Tests SAP PI Practice Tests
245/customizing-credit-
university/sap-hr-practice-tests-249-326377) management-6830.html)
university/sap-pi-practice-tests-439-
327560)
Material
SAP LE and WM Practice Tests Determination, Listing,
(https://www.wisdomjobs.com/e- Exclusion, And
university/sap-le-and-wm-practice-tests-838- Proposal
327660)
Material Determination
245/material-determination-
6900.html)
Automatic Product Proposal

245/automatic-product-
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Material Listing And

Exclusion
245/material-listing-and-
exclusion-6904.html)
Customer–material Info
Records
245/customermaterial-info-
records-11258.html)
Dependencies Between
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245/dependencies-between-
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11259.html)
Item Proposal
245/item-proposal-
11260.html)
Serial Numbers And

Batch Management
Serial Numbers
245/serial-numbers-
6909.html)
Batch Management In The

Sap
245/batch-management-in-
the-sap-6913.html)
Customizing Batch
Management
245/customizing-batch-
management-6914.html)
Advanced Techniques
Enhancement Packages
245/enhancement-packages-
6917.html)
Important Tools And

Techniques
245/important-tools-and-
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Sap Sd Interview
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Sap Sd Practice Tests

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CUSTOMER HIERARCHY - SAP SD 

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the system, yet there could be requirement to map themThe

The Basic Sales Cycle

multilevel structure. Any speci c data (such as the price245/the-basic-sales-cycle-

dependent nodes in the tree. A validity period is attachedHelp Menu

Step 2: Create Hierarchy Nodes Sap Sd Overview

Creating a hierarchy node Setting Up The Sales

Con guring A Distribution

Con guring A Division

can also launch this transaction from within a customer university/sap-sd-tutorial-

Step 1: Specify Hierarchy Type De ning A Common

Setting Up A Sales Group

Con guring Plants

Maintain Customer Hierarchy screen 245/setting-up-a-storage-

Setting Up A Shipping Point

hierarchy. Customer Master

Maintaining Text In Customer

How To Determine Text In

Assigning sales areas to a hierarchy type Check And Transfer Of

Types Of Sales Documents

« Previous Topics Sales

 Running A Consistency Check Shipping And

SAP SD Related Tutorials university/sap-sd-tutorial-

SAP LE and WM Interview Questions SAP Payroll Account

SAP GTS Interview Questions 6827.html)

Automatic Product Proposal

Material Listing And

Serial Numbers And

Batch Management In The

Important Tools And

Sap Sd Practice Tests

Customer onboarding = success

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