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Define MIME Type

This SAP SD (Sales and Distribution) tutorial, explains the step-by-step procedure to define the Customer Hierarchyin the SAP system with the proper screenshots.

What is Customer Hierarchy in SAP?

A customer hierarchy in SAP SD is a flexible structure consisting of the level of customers in the SAp system. Every customer with the exception of the uppermost (higher) customer refers to another customer at a higher level in the hierarchy. The primary purpose of Customer Hierarchy is Pricing and Reporting.

How to Define Customer Hierarchy in SAP?

Please follow the steps below to define the customer hierarchy in your SAP system:

Enter t-code SPRO in the SAP Command Field and then press Enter button to Execute.


Now on Customizing: Execute Project screen click the SAP Reference IMG button to proceed.

Reference IMG

Next, navigate to the following SAP IMG path:

SPRO > SAP Reference IMG > Investment Management >  Sales and Distribution > Master Data > Business Partners > Customers > Customer Hierarhy > Define Hierarchy Types

IMG path

Next on the Change View "Customer Hierarchy Types": Overview screen, you will see the previously defined customer hierarchies on your SAP system.

Previous List

Next, click the New Entries button to define a new Customer Hierarchy in your SAP system.

New Enteries

Now, provide the following details for the new Customer Hierarchy as shown in the image below:

  • CustHtype: Enter a single character that defines the new customer hierarchy.
  • Name: Enter the short name.
  • PartFunct.: Choose the Partner Function for the new customer hierarchy.


Once all the details are entered click the Save button to save the details of the new customer hierarchy.


Next, select your Customization Request id and press Enter to proceed.


A message Data was saved will be displayed on the bottom of your screen.

Data was saved

You have successfully created a new Customer Hierarchy S in your SAP system.

New Customer Hierarchy