Business Partner Group
Partner Grouping is used for organizing different types of Business Partners into groups. Number Ranges are assigned to Partner Group marking them either internally generated number or external. One Group has to be designated as default and if none selected, default is taken for creating Business Partner
BP Creation - Grouping
At the time of BP creation , BP Grouping is available and if none selected, the default group would be used for creation of Business Partner
How to Hide Grouping
Based on the design requirements, it may be good idea to hide different groupings at the time of Business Partner creation. This prevents users performing creation of particular Business Partner in a wrong group
Configuration - Cross-Application - Business Partner - Basic Settings - Number Ranges and Grouping - Define Groupings and Assign Number Ranges
After hiding Business Partner Group, try to create a Business Partner through transaction BP and you will see the impact of hide configuration