What is hierarchy in SAP CO - Controlling?

SAP Term: hierarchy

• Component: CO

• Component Name: Controlling

• Description: A hierarchical structure of objects for example, cost centers, orders, groups, work breakdown structure elements. Hierarchies for example, cost center hierarchies have the following characteristics: All nodes other than end nodes are used purely for summarization purposes. The values being structured for example, the individual cost centers are called single values and can be assigned only to the end nodes in other words, at the lowest level of the hierarchy.

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• Key Concepts: 
  Hierarchy in SAP CO Controlling is a structure of nodes and elements that are arranged in a hierarchical order. It is used to represent the organizational structure of a company, such as cost centers, profit centers, and other organizational units. It is also used to define the relationships between different elements in the structure. 
  
  How to use it: 
  In SAP CO Controlling, hierarchies are used to define the relationships between different elements in the organizational structure. For example, a cost center hierarchy can be used to define the relationship between different cost centers and their respective parent cost centers. Hierarchies can also be used to define the relationships between different profit centers and their respective parent profit centers. 
  
  Tips & Tricks: 
  When creating hierarchies in SAP CO Controlling, it is important to ensure that all elements are correctly linked together. This will ensure that all data is accurately represented in the hierarchy. Additionally, it is important to ensure that all elements are correctly labeled so that they can be easily identified when navigating through the hierarchy. 
  
  Related Information: 
  For more information on hierarchies in SAP CO Controlling, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed tutorials on how to create and manage hierarchies in SAP CO Controlling.