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Define vendor hierarchy categories

In this step, you can define hierarchy categories.
In this way, vendors can be grouped into hierarchies using a similar procedure to that in SD.

The hierarchy category controls the following:

At a specific time, one vendor master record for each hierarchy category is assigned uniquely to a higher node in the hierarchy.
Hierarchy nodes themselves are stored as vendor master records.

Standard Settings

The following setting is available in the standard system:

Hierarchy category Initial partner function Description

A 2A Standard

Activities

If you want to define your own hierarchy categories, proceed as follows:

1. Enter a one-character, alphanumeric key and a description.
2. Also enter an initial partner function for which the hierarchy category is valid.
3. Save the hierarchy category.

Further Notes

Vendor hierarchies are used in pricing and in volume rebate processing.

Only those partners who are indicated as relevant for pricing or relevant for volume rebate are used for pricing.