Create an organization hierarchy

Important

Dynamics 365 for Finance and Operations is now being licensed as Dynamics 365 Finance and Dynamics 365 Supply Chain Management. For more information about these licensing changes, see Dynamics 365 Licensing Update.

Use the following procedure to create an organizational hierarchy. You can use organizational hierarchies to view and report on your business from various perspectives. For example, you can set up one hierarchy for tax, legal, or statutory reporting. You can then set up another hierarchy to report financial information that is not legally required, but that is used for internal reporting.

Before you create an organizational hierarchy, you must create organizations. For more information, see the “Create a legal entity” or “Create an operating unit” tasks. You can also create departments and teams.

The demo data company used to create this procedure is USMF.

Create a hierarchy

  1. Go to Navigation pane > Modules > Organization administration > Organizations > Organization hierarchies.
  2. On the Action pane, click New.
  3. In the Name field, type a value.
  4. In the Purpose section, click Assign purpose.
  5. In the list, find and select the desired record. Select a purpose to assign to your organization hierarchy.
  6. In the Assigned hierarchies sectiom, click Add.
  7. In the list, mark the selected row. Find the hierarchy you just created.
  8. Click OK.

Add organizations to the hierarchy

  1. In the list, find and select the desired record. Select your hierarchy.
  2. In the Assigned hierarchies section, click View hierarchy.
    • Add organizations, as necessary.
    • To add an organization, click Edit and then Insert to add the organization. When you are done making changes you can Save a draft and/or Publish the changes.