Company Hierarchies
You must define the company hierarchy before you generate a summary forecast. It is strongly recommended that you organize the hierarchy by creating a diagram or storyboard.
This graphic shows an example of a company hierarchy:

Establish a forecasting structure that realistically depicts the working operation of the company, from item level to headquarters level, to increase the accuracy of the forecasts. By defining the company processes and relationships at multiple levels, you maintain information that is more detailed and can plan better for the future needs.