---
title: "Set up organization hierarchy"
slug: "set-up-organization-hierarchy"
tags: ["Task topic"]
updated: 2026-03-25T07:22:27Z
published: 2026-03-25T07:22:27Z
canonical: "docs.staedean.com/set-up-organization-hierarchy"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.staedean.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Set up organization hierarchy

You can use an organization hierarchy to define the source company and target companies for master data distribution.

An organization hierarchy that you want to use for master data distribution:

- Must have the **Master data management** purpose.
- Allows only organizations of type **Legal entity**.

An organization hierarchy is time-effective. For master data distribution, only currently effective organization hierarchies are applied.

For more information on setting up an organization hierarchy, refer to [Create an organization hierarchy](https://learn.microsoft.com/en-us/dynamics365/fin-ops-core/fin-ops/organization-administration/tasks/create-organization-hierarchy).

### Steps

1. Go to **Master data management > Setup > Organization hierarchies**.

## Related

- [Use organization hierarchies for master data distribution](/use-organization-hierarchies-for-master-data-distribution.md)