What is account hierarchy in B2B?

Account hierarchy in B2B is a structure that organizes related business accounts, companies, subsidiaries, departments, or locations into parent-child relationships. It helps businesses manage complex customer organizations where multiple entities purchase from or interact with the same supplier.

An account hierarchy can represent:

• Parent and subsidiary companies: A headquarters can be linked to its subsidiaries.
• Company locations: A business can have multiple purchasing or delivery locations.
• Departments or business units: Different divisions can have separate users or purchasing responsibilities.
• Users and contacts: Employees can be associated with specific companies or locations.
• Orders and purchasing activity: Transactions can be tracked at company or location level.
• Permissions and pricing: Different entities or users can have specific access, catalogs, or prices.

Example: A hotel group has a parent company with 20 hotel locations. Each hotel can have its own buyers and delivery address, while the parent company manages contracts, pricing, and overall purchasing.

Account hierarchies help B2B businesses manage complex organizational structures, centralize relationships, control access, and apply appropriate purchasing rules. The exact hierarchy and permissions depend on the B2B commerce platform and the customer’s organizational structure.