A supplier hierarchy is a multi-level structure of suppliers represents a corporate structure. The hierarchy can be used for central agreements valid for a group of suppliers or for reporting and analysis purposes. This activity is used to create the supplier hierarchy header to which you can connect a top-level supplier and subsidiaries in a multi-level structure.
The nodes in the tree structure can either be a supplier or a reporting node only used to be able to follow up on different levels in the structure. You cannot use the same supplier twice within the same supplier hierarchy.
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As a result of this activity a supplier hierarchy header is created to which you can add suppliers in a multi-level structure.