What is hierarchy category in SAP AP-MD-BP - SAP Business Partner?

SAP Term: hierarchy category

• Component: AP-MD-BP

• Component Name: SAP Business Partner

• Description: The function of a hierarchy tree is defined by the hierarchy category. The hierarchy category is used only for classification purposes; it can therefore be freely defined. &EXAMPLE& "Pricing" hierarchy category for condition maintenance

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• Key Concepts: 
  A hierarchy category is a way of organizing business partners in SAP Business Partner. It is a way of grouping business partners into categories based on their characteristics, such as their industry, size, or location. This allows for easier navigation and management of business partners within SAP Business Partner. 
  
  How to use it: 
  In order to use hierarchy categories in SAP Business Partner, you must first create the categories. This can be done by going to the “Hierarchy Categories” tab in the SAP Business Partner application. From there, you can create new categories and assign business partners to them. 
  
  Tips & Tricks: 
  When creating hierarchy categories, it is important to think about how they will be used. For example, if you are creating a category for customers, you may want to include fields such as industry, size, and location. This will make it easier to find and manage customers within SAP Business Partner. 
  
  Related Information: 
  For more information on hierarchy categories in SAP Business Partner, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_BUSINESS_PARTNER/100/en-US