You can use the customer hierarchy type to determine the following:

• the purpose of a specific hierarchy (for example, pricing, statistics)
• which account groups are permitted in the hierarchy
• which organizational data is permitted in the hierarchy

When you maintain a hierarchy, enter the corresponding hierarchy type.

Customer hierarchy type A is provided in the standard system (standard hierarchy). You can define your own hierarchy types in Customizing for sales and distribution under Master data ® Business partner ® Customer ® Customer hierarchy ® Define hierarchy types.