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Define Supplier Hierarchy Categories in SAP?

Updated Jun 12, 2022

This SAP MM (Material Management) tutorial, explains to the users the step-by-step procedure to define a Supplier Hierarchy Categories in the SAP system with proper screenshots of every step performed.

What is Supplier Hierarchy in SAP?

Vendor hierarchiesin SAP are  hierarchies that reflect the structure of vendor organizations. For example, if your vendor base includes chains of retail outlets a user can create vendor hierarchies to reflect the structure of these groups.

How to Define Supplier Hierarchy in SAP?

Please follow the steps below to define the Supplier Hierarchy in your SAP system:

Enter t-code SPRO in the SAP command field and press Enter to execute the transaction code.


On the next screen click the SAP Reference IMG button to proceed to the next steps.

SAP Reference IMG

Now navigate to the following SAP IMG path:

SPRO > SAP Reference IMG > Material Management > Purchasing > Supplier Master > Suplier Hierachy > Define Supplier Hierarchy Categories

IMG Path

Next on the Change View "Define Supplier Hierarchy Categories: Overview screen you will see a list of all previously defined supplier hierarchy categories on your SAP system.

IMG path

Next, click the New Entries button to define a new supplier hierarchy category

New Enteries

Now on the screen enter the following fields for the new :

  • Hierarchy Cat: Enter the one character that will define the new supplier hierarchy category
  • Default Part.function: Enter the default partner function


Once all the details have been entered click the Save button to save the newly defined supplier hierarchy category.


Now select your Customization Request id and press Enter to go to the next screen.


Next, the message Data was saved will be displayed at the bottom of your screen implying all the details for the new Supplier Hierarchy Category have been saved in your system.


You have successfully defined the new Supplier Hierarchy Category on your SAP system.

SAP Reference IMG