What is internal hierarchy in SAP FS-BA-SD - Source Data?

SAP Term: internal hierarchy

• Component: FS-BA-SD

• Component Name: Source Data

• Description: A hierarchy that has a direct effect on processes and results data. In an SAP environment, such a hierarchy is created by using several characteristics and creating references between the various characteristic values.

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• Key Concepts: 
  Internal hierarchy is a term used in SAP Financial Services (FS) Bank Accounting (BA) and Sales and Distribution (SD) Source Data. It is a structure of data that is used to organize and store information in a hierarchical manner. This structure allows for easy navigation and retrieval of data. 
  
  How to use it: 
  The internal hierarchy is used to store and organize data within the SAP system. It is composed of nodes, which are the individual elements that make up the hierarchy. Each node can contain multiple levels of data, which can be organized in a variety of ways. For example, a node may contain customer information, product information, or financial information. 
  
  Tips & Tricks: 
  When creating an internal hierarchy, it is important to consider how the data will be used. This will help ensure that the structure is organized in a way that makes it easy to navigate and retrieve the necessary information. Additionally, it is important to keep the hierarchy as simple as possible to avoid confusion when navigating the system. 
  
  Related Information: 
  The internal hierarchy is closely related to other SAP terms such as master data and transaction data. Master data refers to the core information that is stored in the system, while transaction data refers to the actual transactions that occur within the system. Both of these types of data are organized using an internal hierarchy structure.