How To Fix USMD1074 - Data model &1, entity type &2 has invalid higher-level entity types

SAP Error Message - Details

• Message type: E = Error

• Message class: USMD1 - Datenmodel

• Message number: 074

• Message text: Data model &1, entity type &2 has invalid higher-level entity types

What causes this issue?

Entity type &V2& is used as an additional entity type with usage
<LS>hierarchy name</> in the hierarchies of entity type &V3&. That is
why entity type &V2& can only have higher-level entity types that are
also the higher-level entity types for entity type &V3&. Entity type
&V4& is a leading entity type for &V2&, but not for &V3&.

System Response

The data model cannot be saved or activated

How to fix this error?

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.