Use
This report lets you display or maintain vendor hierarchies during listprocessing. You can call up the report as follows:

• Directly


• With the display transaction MKH2


• With the maintenance transaction MKH1

A vendor hierarchy consists of hierarchy nodes that are assigned toeach other. A node consists of a combination of vendor andpurchasing organization. Each assignment has a validity period.
The assignment of a lower-level node to a higher-level node must alwaysbe unique. This means that you cannot assign a node to more than onenode at a time. Therefore you cannot build network structures.
Vendor hierarchy data is saved exclusively in the table LFMH.Attributes (also referred to as relevancy indicators) for a hierarchynode exist in the vendor master data in the table LFM1
. These relevancy indicators are:

• Relevancy to price determination indicator


• Relevancy to subsequent settlement indicator

During assignment maintenance, the relevancy indicators are transferredfrom table LFM1 and stored redundantly in table LFMH(performance). If the attributes for a node in the vendor master datachange, you can update the attributes before or during hierarchymaintenance. You cannot maintain the attributes directly in hierarchymaintenance.
On the selection screen, you enter the vendor hierarchy category and avalidity date. The hierarchy category confirms the intended purpose fora vendor hierarchy. Hierarchies with different categories are notrelated. Although an assignment in a hierarchy with a certain categoryis unique to that category, it can occur in a hierarchy with anothercategory. The current day's date is displayed as the default validitydate for selection. All assignments are selected that are valid on theday. If you choose a date from the past as validity date, theassignments that were valid on that day are selected for display onlyand cannot be changed.
You can choose to have hierarchy nodes or assignments displayed withvendors' names or with validity periods. To achieve a better overview,you can restrict the display to the first three levels.
During assignment maintenance you can:

• Change the validity period


• Change the existing assignment (Choose Assignment details)


• Create a new assignment


• Choose one of the following to process nodes or sub-trees:

Cut
Assign to higher-level node
Assign to lower-level node
Reassign
Delete

• Display or maintain vendor master data

Here you can change the vendor master data for a hierarchy node

Prerequisites
In Customizing for Purchasing (MM), you maintain settings in thefollowing activities:


• Vendor Hierarchy

Define hierarchy categories
Define partner determination and hierarchy partner functions
Assign account groups
Assign purchasing organizations
Assign one hierarchy category relevant for price determination for eachorder document type

• Partner Determination

Define the use of hierarchy partner functions in partner schemas forpurchasing documents
If you maintain the settings consistently and the hierarchy is built,the system checks during ordering whether the vendor occurs in theprice determination hierarchy defined for the current order documenttype. If it does, then the path for all the vendor's higher-level nodestogether with all the relevancy indicators is transferred to the order.Individual nodes with their hierarchy partner functions (starting fromthe initial partner function of the hierarchy category) are stored aspartners in the order. This path is displayed on the Partnerscreen of the order. You must define enough hierarchy partner functionsfor all higher-level nodes to be transferred.
These hierarchy partner functions are intended exclusively for transferto an order. Because these functions are not used in the vendor master,do not include them in the partner schemas for vendor master data. Fromthis transferred hierarchy nodes path, the first node is determined forwhich the relevance indicator is set. If hierarchy conditions exist forthese nodes, they are taken into account during price determination orsubsequent settlement.