In this step you create the structure for order hierarchies to enable you to summarize the values of individual orders according to the defined hierarchy structure.
The levels of a hierarchy consist of the characteristics defined in classification. The system uses these characteristics to select and summarize orders. The system calculates a total for each characteristic value (such as plant 1000 or plant 2000) and updates it to a summarization object . The values on the individual summarization objects can be analyzed in the information system.
You use an order hierarchy for purposes such as summarizing the costs by period that have been incurred for the orders to produce a particular material in a particular plant.
You can use order hierarchies to summarize the following data:
The first (highest) level of the hierarchy is always the controlling area.
If you enter a status selection profile when you create an order hierarchy, the system only selects the orders for summarization whose status matches the selection criteria in the status selection profile.
Once a data collection run for a hierarchy has been executed, it can no longer be changed.
To define a hierarchy:
For more information on the structure and purpose of order hierarchies, see the online documentation Product Cost Controlling Information System.