Business Process: Customer Hierarchy Creation
(Marketing)
Overview
Trigger:
A Customer Hierarchy is created when a Rebate Agreement is extended to the Retailers of
the main Customer.
Business Process Description:
This document describes the procedure required for creating a Customer Hierarchy.
What you should know:
The Customers are attached to a node. A node is a logical representation of a higher level.
The number assignment for the node is done by the System.
Procedural Steps
1.1.
Access transaction by:
Via Menus Logistics → Sales distribution → Master data → Business Partners → Hierarchy Nodes → Create
Via Transaction Code V-12
In the following example that has been illustrated, please note that we are creating a Customer
Hierarchy to represent the following structure:
What the diagram means to convey is that Anil Agencies is the Main Dealer and he has a retailer named
Eashwar Enterprises. A node for Anil Agencies is created with the same address data as Anil Agencies.
Now we attach both the Customers i.e. Anil Agencies and Eashwar Enterprises to the node and enable
the node for Rebates. As a result, whatever material is bought by any of these Customers, the relevant
discounts shall accrue in favour of Anil Agencies.
Node for Anil Agencies
Customer Anil Agencies
Customer Eashwar
Enterprises
1.2. Menu Path:
Business Process: Customer Hierarchy Creation
(Marketing)
1.4. On screen “Customer Create: initial Screen Sales Area”, enter information in the
fields as specified in the table below:
Field Name Description R/O/C User Action and Values Comments
Customer Refers to the Node number The system generates the Code for the Node Sales
Organisation
Organisational Entity representing a
Zone R Enter the relevant Zone Code
Distribution Channel
Organisational Entity indicating whether the Sale is being made from a depot or from factory
C Enter “10” for Depot Sale Enter “20” for Factory Sale Division Organisational Entity indicating that
the material being sold is Cement or Clinker
C Enter “10” for Cement Sale Enter “20” for Clinker Sale Account
Group
The account group determines the data that is relevant for the Customer master record and a number range from which numbers are selected for the master records.
The Account Group for the node is “0012” assigned by default by System
On screen “Customer Create: Address”, enter information in the fields as specified in the
table below:
The best way to enter data on this screen is to open other session by going to System --> Create
Session and going to the Customer Display screen. You can now cut and paste data from the
display screen onto this screen by toggling between the two screens.
Field Name Description R/O/C User Action and Values Comments
Search Term Refers to a search enabling term R Enter “NODE” for all nodes (Note: On above table, in column “R/O/C; R = Required, O = Optional, and C = Conditional)
After entering relevant data on the screen press the enter button on the screen to go to next
screen.
1.5. On screen “Customer Create: Address”, observe the information on the screen
below:
Business Process: Customer Hierarchy Creation
(Marketing)
Please note that if you copy from an existing Customer record the System shall give a warning
message telling you that a Customer with the same Address already exists. Press the enter
button to come to the following screen.
1.6. On screen “Customer Create: Address”, observe the information on the screen
below:
Press the enter button to come to the following screen.
1.7. On screen “Customer Create: Marketing”, enter information in the fields as specified in the
table below:
Business Process: Customer Hierarchy Creation
(Marketing)
Field Name Description R/O/C User Action and Values Comments
Hier Assignment
Refers to level of assignment R Enter “01” for a higher node Enter “02” for a lower node (Note: On above table, in column “R/O/C; R = Required, O = Optional, and C = Conditional)
We have taken the example of only one level of hierarchy and therefore assigned “01” as the Hierarchy level. In case we wanted another node with a level lower than this we would have assigned “02” to that node.
Press the enter button to come to the following screen.
1.8. On screen “Customer Create: Contact Person”, enter information in the fields as specified in
the table below:
Please enter the name of the Contact person for this Customer and then press the enter button to come
to the following screen.
1.9. On screen “Customer Create: Billing Sales Area”, please perform the instruction stated
below:
Business Process: Customer Hierarchy Creation
(Marketing)
On this screen please tick the “Rebate” Check Box. This will enable the Customers under this node
eligible for the same rebate agreement. Press enter button to come to the following screen.
1.11.
On screen “Customer Create: Billing Sales Area”, please observe the information on the
screen below:
The system is asking you whether you want to save this node. Please enter button to save your work.
1.12.
On screen “Customer Create: Initial Screen Sales Area”, please observe the information
displayed below:
Business Process: Customer Hierarchy Creation
(Marketing)
The system is giving a message that your node has been saved as no “16” for the sales area you made it
for.
2.1.
Access transaction by:
Via Menus Logistics→ Sales distribution →Master data → Business Partner →Customer Hierarchy → Change
2.2. Menu Path:
After following the mentioned menu path you will arrive at the following screen.
Business Process: Customer Hierarchy Creation
(Marketing)
After following the mentioned menu path you will arrive at the following screen.
2.5. On screen “SD Customer Hierarchy”, enter information in the fields as specified in the table
below:
Field Name Description R/O/C User Action and Values Comments Customer
Hierarchy Type
Refers to the types of Hierarchy we want to use
R Enter “A” Standard Hierarchy for the stated purpose
Validity Date Refers to the date from which you want the validity of the Hierarchy assignment to start
R Enter the relevant date
(Note: On above table, in column “R/O/C; R = Required, O = Optional, and C = Conditional)
After entering the relevant information, press the “Execute” button on screen or F8 on your keyboard. You
will enter into the following screen.
2.6. On screen “Maintain Customer Hierarchy”, observe the information displayed on screen
below:
Business Process: Customer Hierarchy Creation
(Marketing)
Press the “Create Assignment Button” on this screen which will take you to the following screen.
2.7.
On screen “Create Hierarchy Assignment”,
enter information in the fields as specified in the
table below:
Field Name Description R/O/C User Action and Values Comments
Hierarchy Refers to the Customer Code which you want to attach to the node
R Enter the relevant Customer Code Hi Level
Hierarchy
Refers to the Node number Enter the Node Code Number to which you want to assign the Customer
Sales Organisation
Organisational Entity representing a Zone
R Enter the relevant Zone Code of Customer and Node in respective fields
Distribution Channel
Organisational Entity indicating whether the Sale is being made from a depot or from factory
C Enter relevant Distribution Channel of Customer and Node in respective fields Division Organisational Entity indicating that
the material being sold is Cement or Clinker
C Enter relevant Division of Customer and Node in respective fields
(Note: On above table, in column “R/O/C; R = Required, O = Optional, and C = Conditional)
Press the “Copy” icon on the message box after filling in the relevant data. This will lead you to the
following screen.
Business Process: Customer Hierarchy Creation
(Marketing)
Press enter button on the message box to continue.
Please note that the Customer, Anil Agencies in our case, has been assigned to the required node as
depicted in our Hierarchy diagram.
2.10.
On screen “Create Hierarchy Assignment”,
enter information in the fields as specified in
the table below:
Business Process: Customer Hierarchy Creation
(Marketing)
Please refer step no 2.7 and perform as per the same instruction table to attach Eashwar Enterprises to
the same node.
2.11.
On screen “Maintain Customer Hierarchy”,
observe the following information displayed on
the screen below:
Please note that the Customer, Eashwar Enterprises in this case, has been assigned to the required node
as depicted in our Hierarchy diagram.
Press the save icon to save your assignment.
2.12.On screen “Maintain Customer Hierarchy”, observe the following information
displayed on
the screen below:
Business Process: Customer Hierarchy Creation
(Marketing)
The system gives out the message displayed at the bottom of the screen mentioning that the records
have been saved.
Access transaction by:
Via Menus Logistics → Sales distribution → Master data → Rebate Agreements Create
3.2.
Menu Path for Creating Rebate Agreement for Customer Hierarchy:
After following the mentioned menu path you will arrive at the following screen.
Business Process: Customer Hierarchy Creation
(Marketing)
After following the mentioned menu path you will arrive at the following screen.
3.4. On screen “Create Rebate Agreement”, enter information in the fields as specified in the
table below:
Field Name Description R/O/C User Action and Values Comments
Agreement type
Represents the Type of Discount you want to pass on to the Customer
R Enter “ZGRK” for Hierarchy Rebate (Note: On above table, in column “R/O/C; R = Required, O = Optional, and C = Conditional)
Please press the Enter icon on the screen to go to the following screen.
3.5. On screen “Create Rebate Agreement”, enter information in the fields as specified in the
table below:
Business Process: Customer Hierarchy Creation
(Marketing)
Field Name Description R/O/C User Action and Values Comments
Sales Organisation
Organisational Entity representing a Zone
R Enter the relevant Zone Code Distribution
Channel
Organisational Entity indicating whether the Sale is being made from a depot or from factory
R Enter “10” for Depot Sale Enter “20” for Factory Sale Division Organisational Entity indicating that
the material being sold is Cement or Clinker
R Enter “10” for Cement Sale Enter “20” for Clinker Sale Sales Office Organisational Entity representing
Depot
R Enter the relevant Zone Code (Note: On above table, in column “R/O/C; R = Required, O = Optional, and C = Conditional)
After entering the relevant information please press the “Copy” button on the screen to go to the following
screen.
3.6. On screen “Create Rebate Agreement”, enter information in the fields as specified in the
table below:
Field Name Description R/O/C User Action and Values Comments
Rebate Recipient
Refers to the Customer for whom you want to enter the Rebate Aggreement
R Enter the relevant Customer Code
(Note: On above table, in column “R/O/C; R = Required, O = Optional, and C = Conditional)
In our case it is Anil Agencies whom we intend should get the Discounts even for Sales of Eashwar Enterprises.
Please press the “Conditions” Button on the screen to come to the following screen.
3.7. On screen “Create Rebate Agreement”, enter information in the fields as specified in the
table below:
Business Process: Customer Hierarchy Creation
(Marketing)
Field Name Description R/O/C User Action and Values Comments
Customer Group
Represents whether the Customer belongs to the Trade segment or Non Trade segment
R Enter the relevant Customer Group
Customer Hierarchy
Refers to the Hierarchy node code at which level you want the Rebate to be applicable
R Enter the Node Code Material Material for which the Rebate is
to be maintained
R Enter the Material Number Rate The Rate for the relevant
parameters
R Enter the Rate for the criteria already selected.
Accruals
Unit Currency in which the transaction will happen
R Enter “INR” for Indian Rupees By The number of units for which the
Rate is relevant R Enter “1” denoting that the rate is maintained for one bag. UOM Unit of Measurement R Enter “bag” denoting that the rate is
being maintained for one bag. (Note: On above table, in column “R/O/C; R = Required, O = Optional, and C = Conditional)
