What is standard hierarchy in SAP CO - Controlling?

SAP Term: standard hierarchy

• Component: CO

• Component Name: Controlling

• Description: A tree structure used during master data maintenance for organizing, from a controlling standpoint, the business processes and cost centers belonging to a controlling area.

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• Key Concepts: 
  Standard hierarchy is a feature of SAP Controlling (CO) that allows users to create and maintain a hierarchical structure of cost centers. This structure can be used to define the relationships between cost centers, such as parent-child relationships, and to assign costs and revenues to the appropriate cost centers. 
  
  How to use it: 
  To use standard hierarchy, users must first create a cost center group in the SAP system. This group will contain all of the cost centers that are part of the hierarchy. Once the group is created, users can then create individual cost centers and assign them to the group. The cost centers can then be linked together in a hierarchical structure using the standard hierarchy feature. 
  
  Tips & Tricks: 
  When creating a standard hierarchy, it is important to ensure that all of the cost centers are properly linked together. This will ensure that costs and revenues are accurately assigned to the appropriate cost centers. Additionally, it is important to keep the hierarchy up-to-date as changes are made to the cost center structure. 
  
  Related Information: 
  For more information on standard hierarchy in SAP Controlling (CO), please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_CONTROLLING/731/en-US.