What is 'balance hierarchy' in SAP PSM - Public Sector Management?

balance hierarchy - Overview

• Component: PSM

• Component Name: Public Sector Management

• Description: Hierarchically structured overview of all master data that is relevant for net voting.

balance hierarchy - Details

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  Key Concepts: 
  Balance hierarchy is a feature of the Public Sector Management (PSM) component of SAP software. It is used to define the structure of a budget and to control the budgeting process. The balance hierarchy is composed of nodes, which are organized in a tree-like structure. Each node represents a budget item, such as an account, cost center, or fund. The nodes are linked together in a hierarchical order, with each node having one or more parent nodes and one or more child nodes. 
  
  How to use it: 
  The balance hierarchy is used to define the structure of a budget and to control the budgeting process. It can be used to create a budget plan, assign budget amounts to each node in the hierarchy, and track actual spending against the budget plan. The balance hierarchy can also be used to generate reports that provide insight into the budgeting process. 
  
  Tips & Tricks: 
  When creating a balance hierarchy, it is important to ensure that all nodes are properly linked together in a hierarchical order. This will ensure that the budgeting process is properly controlled and that reports generated from the balance hierarchy are accurate. Additionally, it is important to ensure that all nodes are properly labeled so that they can be easily identified when generating reports. 
  
  Related Information: 
  For more information on balance hierarchies and