In this lesson, we go over the concepts of global hierarchies and runtime hierarchies and describe how to create and use them.
In the Bike Company, you want to group G/L accounts and account assignment elements like cost centers, activity types, and statistical key figures to make quick filtering selections in reporting and in cost allocations. These groups are often different than the grouping provided in the chart of accounts or standard hierarchy.
In SAP S/4HANA, you use the app to create cost center hierarchies and G/L account hierarchies.
With the same app you can also maintain other hierarchies, such as for profit centers and group reporting.
The basic idea of the Manage Global Hierarchies app is to have one common hierarchy creation tool for many object types. These universal hierarchies can then be used by all relevant embedded reporting apps.
These hierarchies can be used by default for reporting and in allocations but not for planning.