Project Organization Hierarchy

Hi,
Please some one explain the Business purpose of defining Project Organization Hierarchy. Why we need to define Project & expenditure Organization Hierarchy
As per the user guide "An organization hierarchy illustrates the relationships between your organizations.When you define a hierarchy, you tell Oracle Projects which organizations are subordinate to which other organizations"
What is use of informing "Oracle Projects which organizations are subordinate to which other organizations".
If it is for reporting how it is help in the reporting? is the report rollup information in the top organizaiton?
Thanks
Govind

Hi
The organizations hierarchy is used in two places.
A) When defining burden schedule for costing or billing, you can enter burden rate (multiplier) on any level of parent organization in the hierarchy. Then run Compile. The system allocates the multiplier value to all organizations which are subordinates of the organization which hold the multiplier.
B) You can select any parent organization in the hierarchy and add to it the classification - Projects Invoice Collection Organization. The run the process to create Transaction Types in AR for that parent org. When generating invoices for a project and transferring them to AR, the system go up the hierarchy from the project owning organization till the first parent with that classification. The associate the appropriate transaction type to the invoice when imported to AR. This functionality depend on implementation options - non centralized invoicing.
I think that standard Reporting within Oracle Projects does not roll up along the organization hierarchy. However, it may be rolling up in Projects Inteligence or OBIA.
Dina

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