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Selecting Hierarchies 
You select hierarchies at the following stages in the query definition:
· When you select a variable hierarchy for a hierarchy node (see also: Restricting Characteristics: Hierarchies).
· When you select a display hierarchy for a characteristic (see also: Characteristic Properties).
You use this function if hierarchies exist for the characteristic that you want to restrict.
For
more information on hierarchies, see the
Hierarchies
section of the Administrator Workbench documentation.

If you have activated virtual time characteristics in the SAP Reference IMG for time characteristics, you can select virtual hierarchies when selecting hierarchies.
For more information, see
Activating Virtual
Time Hierarchy.
...
1. Select the required fixed hierarchy from the list of available hierarchies.
2. Choose OK.

You need this function only when you are selecting a fixed display hierarchy for a characteristic.
A hierarchy becomes variable if at least one of its elements (name, version, key date) is variable.
...
1. Select a hierarchy from the list of available hierarchies.
2. Choose the Variables radio button from the field on the right (name, version, key date) according to which you want to select for the hierarchy. The selection list now displays the available variables.
3. Select the variable you want to use.
4. Choose OK.

Note that it is possible to fill the fields for version and key date, only if the characteristic has version-dependent or time-dependent hierarchies.
You can also define new variables by choosing New Variables. The Variable Wizard appears. For more information, see Defining Variables with the Variable Wizard.