A hierarchy of territories used in Territory Management. It can comprise several levels, for example:
Level 0: Company
Level 1: Region
Level 2: Sub-Region
Level 3: Area
You use a territory hierarchy in the following cases:
To better segment your sales market. With different levels, you can define who will be responsible for a particular territory at a particular point and the accounts and products that will be part of that territory
Monitor and administer your market at the desired level of granularity.
A territory hierarchy typically consists of the following:
A root node, which is the top most node and is identified by a unique territory hierarchy ID.
One or more territories, which are sub-nodes at various levels of the root hierarchy.
Illustration of a Territory Hierarchy
An example of how territory hierarchy IDs are formulated is also explained in the Customizing document under