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CVC - Hierarchy aggregated level - dis aggregation level

Dear Experts,

I have simple question

 

just wonder how system recognize which characteristics  is higher lever and which is lower level

i know we assign location and product in planning area so that system can recognize

 

like say i have region and brand how the system recognize it 

 

Profit center ->Region->location->salesorg->product and so on ...

 

Regards

Raj


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