Customer Hierarchy in SAP
Filed under: SAP SD Help, SAP SD Questions, SAP SD Tutorials, Sale and Distribution
Customer Hierarchy is used for classifying your customers according to regional level changing company design, third party customers, cunsumption orgeographical area, or sales workforce(sales manager, sales man etc). It is configured according to account group assignments.
For example: according to geographical area;
Please assume we have a real customer number in the lowest hierarchy level in account group ( Zxxx), and if we go to the highest level in the customer hierarchy level we can assign this hierarchy as below:
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SAP Questions: Assigning Organizational Units
This part include the sample SAP Questions on Assigning Organizational Units:
• Which organizational units does a sales area consist of? – A combination from sales organization, distribution channel, and division forms a sales area.
• Can you assign more than one distribution channel to a sales organization? – Yes. You can assign more than one distribution channel to a sales organization.
• Can you assign a distribution channel to multiple sales organizations? – Yes. You can assign a distribution channel to multiple sales organizations.
• Which organizational unit is a sales organization assigned to in order to represent the connection of sales and distribution processes to financial accounting? – To the company code.
• Can you assign a sales organization to multiple company codes? – Depends on the results of scheduling. A sales organization is assigned to only one company code. However, more than one sales organization can be assigned to a company code.
• In a sales organization, can you sell materials from multiple delivering plants? – Yes. In a sales organization, you can sell materials from multiple delivering plants.
• To which organizational unit do you assign a shipping point? – The shipping point is assigned to a plant.
• Can you assign a shipping point to multiple plants? – Yes. A shipping point can also be assigned to multiple plants. However, this might only be appropriate when the plants are in physical proximity to each other.
• In which organization unit are storage locations grouped together? - To the plant.
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SAP Questions: Cross-Sales Organizational Units
This part include the sample SAP Questions on Cross-Sales Organizational Units:
• A corporate group can be divided up into several companies or subsidiaries. Which organizational unit can you use in financial accounting to represent a legal entity and an independent accounting unit in the R/3 System? – Company code
• In a company, you can manufacture and store materials in different places. Which organizational unit can you use in the R/3 system to represent a production facility or a distribution center? – Plant
• Within a plant, material storage can be divided up according to various locations or rooms. Which organizational unit can you use in the R/3 system to represent such a location or room? – Storage location
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