What is customer group in SAP SD - Sales and Distribution?

SAP Term: customer group

• Component: SD

• Component Name: Sales and Distribution

• Description: A definable grouping of customers for pricing or statistical purposes. For example, a customer group can be made up of wholesalers or retailers.

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• Key Concepts: 
  A customer group is a classification of customers in SAP Sales and Distribution (SD) that allows for the grouping of customers based on certain criteria. This allows for easier management of customer data and simplifies the process of creating sales documents. Customer groups can be used to assign different pricing, payment terms, and other conditions to different customer groups. 
  
  How to use it: 
  In SAP SD, customer groups are created in the Customizing application. The criteria used to create customer groups can be based on the customer’s industry, size, location, or any other criteria that is relevant to the business. Once the customer group is created, it can be assigned to customers in the master data. 
  
  Tips & Tricks: 
  When creating customer groups, it is important to consider how they will be used in the future. For example, if a company wants to offer different pricing for different customer groups, it is important to create customer groups that are easily distinguishable from each other. 
  
  Related Information: 
  Customer groups can also be used in conjunction with other SAP SD features such as pricing conditions and credit management. Additionally, customer groups can be used in reporting and analytics to gain insights into customer behavior and trends.