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

SAP Term: customer hierarchy

• Component: SD

• Component Name: Sales and Distribution

• Description: A representation of complex customer structures. For example, you can display the regional structure of a buying group as a customer hierarchy. The customer hierarchy contains pricing information that is valid for all customers in the hierarchy.

Smart SAP Assistant

• Key Concepts: 
  Customer hierarchy is a feature of SAP Sales and Distribution (SD) that allows users to group customers into hierarchies. This allows for easier management of customer data, as well as the ability to assign discounts and pricing conditions to the entire hierarchy. 
  
  How to use it: 
  To use customer hierarchy, users must first create a customer master record for each customer in the hierarchy. Then, they must assign each customer to a specific hierarchy node. Finally, they can assign discounts and pricing conditions to the entire hierarchy. 
  
  Tips & Tricks: 
  When creating customer hierarchies, it is important to consider how the hierarchy will be used. For example, if the hierarchy is used for pricing purposes, it is important to ensure that all customers in the hierarchy are assigned the same pricing conditions. 
  
  Related Information: 
  For more information on customer hierarchies in SAP SD, please refer to the SAP Help Portal or contact your local SAP consultant.