To ensure that all objects are completely settled in a multi-level settlement, the individual objects must be settled in a certain sequence. In Release 3.0, this sequence is represented by assigning a hierarchy number to each object. The settlement hierarchy results from the interaction between these individual hierarchy numbers.
Example
During a settlement, object 1 is settled to object 2 and this, in turn, to object 3.
Object 1 must be settled first, then object 2 (with the debits from the settlement of order 1) and finally object 3 (with the debits from the settlement of objects 1 and 2).
This means that object 1 must have the highest, object 2 a lower and object 3 the lowest hierarchy number, e.g. 100, 050, 000.
For more information on the settlement hierarchy, refer to document "CO Settlement".