Customer Hierarchy

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 Via Transaction Code

Logistics → Sales distribution → Master data → Business Partners → Hierarchy Nodes → Create V-12

In the following example that has been illustrated, please note that we are creating a Customer Hierarchy to represent the following structure:

Node for Anil Agencies

Customer Anil Agencies

Customer Eashwar Enterprises

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.

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Business Process: Customer Hierarchy Creation (Marketing) 1.2. Menu Path:

After following the mentioned menu path you will arrive at the following screen.

1.3. Menu Path:

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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 Customer

Description Refers to the Node number

Sales Organisation

Organisational Entity representing a Zone

R/O/C R

User Action and Values The system generates the Code for the Node

Comments

Enter the relevant Zone Code

Organisational Entity indicating C Enter “10” for Depot Sale whether the Sale is being made from Enter “20” for Factory Sale a depot or from factory Organisational Entity indicating that C Enter “10” for Cement Sale Division the material being sold is Cement or Enter “20” for Clinker Sale Clinker The account group determines the The Account Group for the node is “0012” Account data that is relevant for the Customer assigned by default by System Group master record and a number range from which numbers are selected for the master records. (Note: On above table, in column “R/O/C; R = Required, O = Optional, and C = Conditional) Distribution Channel

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Business Process: Customer Hierarchy Creation (Marketing) 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 Search Term

Description Refers to a search enabling term

R/O/C R

User Action and Values Enter “NODE” for all nodes

Comments

(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:

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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:

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Business Process: Customer Hierarchy Creation (Marketing)

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:

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Business Process: Customer Hierarchy Creation (Marketing)

Field Name Hier Assignment

Description Refers to level of assignment

R/O/C R

User Action and Values Enter “01” for a higher node Enter “02” for a lower node

Comments

(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:

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Business Process: Customer Hierarchy Creation (Marketing)

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:

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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:

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Business Process: Customer Hierarchy Creation (Marketing)

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:

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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 Via Transaction Code

Logistics→ Sales distribution →Master data → Business Partner →Customer Hierarchy → Change VDH1

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Business Process: Customer Hierarchy Creation (Marketing) 2.2. Menu Path:

After following the mentioned menu path you will arrive at the following screen.

2.3. Menu Path:

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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:

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Business Process: Customer Hierarchy Creation (Marketing)

Field Name Customer Hierarchy Type

Description Refers to the types of Hierarchy we want to use

R/O/C User Action and Values R Enter “A” Standard Hierarchy for the stated purpose

Comments

Refers to the date from which you want R Enter the relevant date the validity of the Hierarchy assignment to start (Note: On above table, in column “R/O/C; R = Required, O = Optional, and C = Conditional)

Validity Date

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:

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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:

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Business Process: Customer Hierarchy Creation (Marketing)

Field Name Hierarchy Hi Level Hierarchy Sales Organisation

Description Refers to the Customer Code which you want to attach to the node Refers to the Node number

R/O/C R

Organisational Entity representing a Zone

R

User Action and Values Enter the relevant Customer Code

Comments

Enter the Node Code Number to which you want to assign the Customer Enter the relevant Zone Code of Customer and Node in respective fields

Organisational Entity indicating C Enter relevant Distribution Channel of whether the Sale is being made from Customer and Node in respective fields a depot or from factory Organisational Entity indicating that C Enter relevant Division of Customer and Node Division the material being sold is Cement or in respective fields Clinker (Note: On above table, in column “R/O/C; R = Required, O = Optional, and C = Conditional) Distribution Channel

Press the “Copy” icon on the message box after filling in the relevant data. This will lead you to the following screen. 2.8. On screen “Maintain Hierarchy Nodes”, observe the information displayed on screen below:

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Business Process: Customer Hierarchy Creation (Marketing)

Press enter button on the message box to continue.

2.9. On screen “Maintain Hierarchy Nodes”, observe the information displayed on screen below:

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Business Process: Customer Hierarchy Creation (Marketing)

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:

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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:

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Business Process: Customer Hierarchy Creation (Marketing)

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:

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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

Via Transaction Code

VB01

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Business Process: Customer Hierarchy Creation (Marketing) 3.2.

Menu Path for Creating Rebate Agreement for Customer Hierarchy:

After following the mentioned menu path you will arrive at the following screen.

3.3. Menu Path for Creating Rebate Agreement for Customer Hierarchy:

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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:

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Business Process: Customer Hierarchy Creation (Marketing)

Field Name Agreement type

Description Represents the Type of Discount you want to pass on to the Customer

R/O/C R

User Action and Values Enter “ZGRK” for Hierarchy Rebate

Comments

(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:

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Business Process: Customer Hierarchy Creation (Marketing)

Field Name Sales Organisation

Description Organisational Entity representing a Zone

R/O/C R

User Action and Values Enter the relevant Zone Code

Comments

Organisational Entity indicating R Enter “10” for Depot Sale whether the Sale is being made from Enter “20” for Factory Sale a depot or from factory Organisational Entity indicating that R Enter “10” for Cement Sale Division the material being sold is Cement or Enter “20” for Clinker Sale Clinker Organisational Entity representing R Enter the relevant Zone Code Sales Office Depot (Note: On above table, in column “R/O/C; R = Required, O = Optional, and C = Conditional) Distribution Channel

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:

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Business Process: Customer Hierarchy Creation (Marketing)

Field Name

Description R/O/C User Action and Values Refers to the Customer for whom you R Enter the relevant Customer Code want to enter the Rebate Aggreement (Note: On above table, in column “R/O/C; R = Required, O = Optional, and C = Conditional)

Comments

Rebate Recipient

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:

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Business Process: Customer Hierarchy Creation (Marketing)

Field Name Customer Group Customer Hierarchy Material Rate Accruals Unit By

Description Represents whether the Customer belongs to the Trade segment or Non Trade segment Refers to the Hierarchy node code at which level you want the Rebate to be applicable Material for which the Rebate is to be maintained The Rate for the relevant parameters

R/O/C R

Currency in which the transaction will happen The number of units for which the Rate is relevant Unit of Measurement

User Action and Values Enter the relevant Customer Group

R

Enter the Node Code

R

Enter the Material Number

R

Enter the Rate for the criteria already selected.

R

Enter “INR” for Indian Rupees

Comments

R

Enter “1” denoting that the rate is maintained for one bag. UOM 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)

3.8. On screen “Create Rebate Agreement”, enter information in the fields as specified in the table below:

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Business Process: Customer Hierarchy Creation (Marketing)

Please note that after pressing the “Save” icon on the earlier screen the system saves the Rebate Agreement and assigns it a number internally.

The transaction is now complete.

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