The conditions assigned to the nodes enable you to use the account hierarchy for pricing during business transactions.
Pricing is carried out using the Internet Pricing and Configurator (IPC).
For more information, see Pricing.
You have made the necessary settings in Customizing for Customer Relationship Management, by choosing Master Data→ Business Partner → Account Hierarchy → Define Condition Group.
At a particular organizational level in SAP CRM you can define pricing arrangements and other conditions, which are sales area-dependent, for the hierarchy nodes. These conditions can then apply to the lower-level hierarchy nodes and the business partners assigned to them.
By means of an access sequence, the sequence in which the system searches for conditions records is set, so that conditions must not be automatically valid for all lower-level areas.
For more information on conditions, see Condition Maintenance.
For example, a discount is valid for the head office of Smith Ltd. and also for the lower-level branches North and South in the second level of the hierarchy structure. However it is not valid for the branches South-West and South-East in the third level of the structure.