What is item hierarchy in SAP (FIN-SEM-BCS - Business Consolidation)?

SAP Term: item hierarchy

• Component: FIN-SEM-BCS

• Component Name: Business Consolidation

• Description: Portrayal of a structure of financial statement items. Item hierarchies can consist of multiple root nodes for example, one for the balance sheet, and one for the income statement. The end nodes in an item hierarchy are always FS items. The remaining nodes can represent text nodes for structuring the hierarchy for example, the text node "Total Assets", or they can represent FS items as well.

Smart SAP Assistant

• Key Concepts: 
  Item hierarchy is a feature of the Business Consolidation component of SAP's Financial Services and Enterprise Management (FIN-SEM-BCS) suite. It allows users to create a hierarchical structure of items, such as accounts, cost centers, and profit centers, that can be used to organize and analyze financial data. 
  
  How to use it: 
  To use item hierarchy, users must first create a hierarchy structure in the system. This can be done by defining the parent-child relationships between items. Once the structure is created, users can assign items to the hierarchy and use it to analyze financial data. 
  
  Tips & Tricks: 
  When creating an item hierarchy, it is important to consider how the data will be used. For example, if the data will be used for reporting purposes, it may be beneficial to create a more detailed hierarchy with multiple levels. 
  
  Related Information: 
  Item hierarchy is closely related to other features of the Business Consolidation component such as cost center accounting and profit center accounting. These features allow users to analyze financial data in more detail by assigning costs and profits to specific items in the hierarchy.