Use of Organizational Hierarchy

Hi All ,

Could you explain the importance of Organizational Hierarchy in AX 2012 ?

With out creating the Organizational Hierarchy also , companies can create the transactions between the inter companies , then what is the use of this functionality and in which scenario we need to implement ?

( I have gone through the MS link also , even i am not clear the importance of this functionality )

Thanks in advance.

Several uses from memory: Management Reporter the default financial reporting tool uses them, you can hang data security access off them, workflow can reference them and the policies can reference them.

Policies are the most commonly used functioning with respect to organization hierarchy. Below post might help you to understand the best use of it in the policies.