---
title: "Use organization hierarchies for master data distribution"
slug: "use-organization-hierarchies-for-master-data-distribution"
description: "Set up an organization hierarchy for efficient master data distribution, linking legal entities and defining messages for seamless data management."
tags: ["Object topic"]
updated: 2026-03-20T10:30:15Z
published: 2026-03-20T17:44:40Z
canonical: "docs.staedean.com/use-organization-hierarchies-for-master-data-distribution"
---

> ## 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.

# Use organization hierarchies for master data distribution

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

## Setup

### Organization hierarchy

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).

### Company

To be able to use an organization hierarchy for master data distribution, set up a company of type **Hierarchy** and link the organization hierarchy to it.

> [!NOTE]
> **Note** Make sure that each legal entity in the organization hierarchy is set up as a master data management company as well. This is required because of the company-specific data steward setup.

### Master data entity

If you use an organization hierarchy to define a source company and target companies for master data distribution, set up master data entity messages of type **Hierarchy**.

An organization hierarchy has several levels of companies (legal entities) between which you can distribute master data. The master data distribution between two organization hierarchy levels is called a layer.

For each master data distribution layer, define the messages that are used to send master data:

- From a source company to target companies.
- From a source company to staging journals.
- From a staging journal to a target company.

### Example

This picture is an example of an organization hierarchy that is used for master data distribution.

![](https://cdn.document360.io/da662430-6a41-47b1-8c7e-7e4ac37a9756/Images/Documentation/Images/File%20image40650094-1923-4670-B0AD-6A31542E47E4)

The company levels are:

- Corporation
- USA and Europe
- Retail USA, Manufacturing USA, Retail Europe, Manufacturing Europe

The master data distribution layers for which you define a message are:

- Layer 1
- Layer 2

So, for each layer, only one message is used to distribute master data. For example, the same message is used to distribute master data from company USA to Retail USA and from company Europe to Manufacturing Europe.

### Initialization

For a master data entity message, you can do these initializations:

- Initialize master records: If you initialize master records for a message of type **Hierarchy**, the initialization is done for each source and target combination in the organization hierarchy.
- Initialize master data in new company: If you initialize new company master data for a message of type **Hierarchy**, the initialization is done for each new company in the organization hierarchy.

## Use

### Push master data

When you create master data, you create company subscriptions to the master data record.

On master data creation, you can select a company of type **Hierarchy**. This creates a separate subscription for each child company of the current company in the organization hierarchy, referencing the target group for clarity.

### Subscriptions

You can create subscriptions to the master data record manually as well.

On creating subscriptions, you can select a company of type **Hierarchy**. This creates a separate subscription for each child company in the organization hierarchy, referencing the target group for clarity. Subscriptions are only created for organization hierarchy companies without a subscription to the master data record.

### Pull master data

You can pull master data to the current company, You can do so if a master data entity exists that has a message with an organization hierarchy. In the organization hierarchy, the current company must be a child company of source company from which you want to pull master data.

## Related

- [Set up organization hierarchy](/set-up-organization-hierarchy.md)
- [Pull master data with dynamic button](/pull-master-data-with-dynamic-button.md)
- [Set up hierarchy company](/set-up-hierarchy-company.md)
- [Set up master data entity message - Hierarchy](/set-up-master-data-entity-message-hierarchy.md)
- [Initialize master records](/initialize-master-records.md)
- [Initialize master data in new company](/initialize-master-data-in-new-company.md)
- [Define master records](/define-master-records.md)
- [Edit master record](/edit-master-record.md)
- [Pull master data](/pull-master-data-flow.md)