Setting Up Price Hierarchies Setting Up Pricing Information by Ayman Refat - March 13, 20180 Setting Up Price Hierarchies Concept The preference hierarchy is a user-defined hierarchy that determines the sequence in which the system searches for pricing. You define the constants for each preference type that you plan to use in the master revision for the preference. The system stores the preference type in user-defined code (UDC) table 40/PR. The system uses UDC 40/PR for both base and advanced pricing hierarchies. The preference classification specifies how the system uses the preference. UDC 40/CL contains the classification code. You must use preference hierarchy 51 for base prices. This chart illustrates how you could define base prices: You can define base prices for items and item groups by customer or customer group. For customers and customer groups, you can use the ship-to, sold-to, or parent address. You can also define base prices for all customers. You set up the search sequence from specific to general. After the system finds a pricing match, the system stops searching. The more search combinations that you select, the more processing time the system requires. The recommended practise is that no more than four combinations be used in the search sequence. The system stores the hierarchies in the Preference Hierarchy File table (F40073). Procedure In this task, you will update the base price hierarchy. Step Action Navigate to the Preference Hierarchy program (P40073) on the Price Management menu (G4222). Click the Price Management link. Click the Preference Hierarchy link. Use the Work With Preference Hierarchy form to search for and select existing preference types. Step Action Click in the Preference Type field. Enter the desired information into the Preference Type field. Enter “51“. Click the Find button. Click the 51 option. Click the Select button. Use the Preference Hierarchy Revisions form to specify the sequence in which the system searches for base prices. Step Action Click in the Sold To Customer Group and Item Group field. Enter the desired information into the Sold To Customer Group and Item Group field. Enter “3“. Click in the All Customers field. Enter the desired information into the All Customers field. Enter “4“. Click the OK button. Step Action Click the Close button. You have successfully updated the search sequence for base price hierarchy 51. End of Procedure.