The organizational hierarchy depicts the relationships between the various organizational units (OUs).

You create these relationships by assigning one organizational unit to another, where one OU is subordinate to the other.

You can maintain the organizational hierarchy explicitly. Alternatively, you can maintain the organizational hierarchy when maintaining the organizational units. To do this, in each case specify the higher-level OU in the master data of the OU you are maintaining. The system uses this specification to create the corresponding assignment records in the organizational hierarchy.

The resulting hierarchy can portray any number of levels.

The category of the organizational units determines whether you can assign one organizational unit to another. In Customizing for IS-H, you specify which building categories may be assigned to each other. For more information about this, see the section entitled Maintain Hierarchy of Organizational Unit Categories in the IS-H Implementation Guide.