How to activate hierarchy in report?

Hi experts,
I want to create a report which will have Sales Office.. and my requirement is Sales Office Hierarchy shoud be active.. What are the steps to activate hierarchy in the report?
Thank you,
Swati.

1. why it is necessary to activate the sales hierarchy.. i mean what is its use??
> hierarchy helps to view the data at various level. Say you have hierarchy for Plant. Then you can see data at each plant level or total at region level or at country level. Same can be with time - date or week or month or year.
2. Sort withing the hierarchy according to - sorting by Key or by text - name of plant or plant code.
3. Expand to level - at what level hier should be diplayed. if there are more levels, then at what level inital report output is required.
4. Position of Lower level nodes - nodes below / above its previous level.
5. Values of Posted nodes  & Nodes with only lower level nodes - used to display or hide the data at each node level
regards: gaurave

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