What Is Hierarchy?
Hierarchy Used in Different Master Data Domains
Hierarchy in MDM is used in several domains, such as party master data, location master data, and product master data. Party master data includes the company, business contacts (customers, suppliers, and related business partners), and individuals (employees, customers, and contractors). It deals with customers, providers, and other business entities. The accounts are settled in the department, legal representatives, and parent organization sequence at the national level; and then at the global level.
Location master data occupies the external hierarchies around the globe ranging from continents to the down level to streets and buildings. In contrast, internal hierarchies include geographies such as sales districts and different regions in the organization. Product master data is related to external and internal products. External products may be UNSPSC, HS, ETIM, etc. Contrarily internal products are linked to reporting, purchasing, and sales of products, etc.