What are analysis hierarchies?
An analysis hierarchy allows you to divide the analysis codes for a dimension into logical groups. It provides a second, higher level of analysis for reporting purposes. This enables analysis to be captured at the lowest level, speeding up data entry, and then grouped and summarized at a higher level.
The flexibility of grouping codes in a hierarchy is that the analysis codes within a group do not need to be in sequential number ranges.
An Example
The sales area example used to illustrate the use of analysis dimensions and analysis codes can be extended to explain how hierarchies are used. Analyzing sales by sales region is a common requirement, so the sales area analysis codes might need to be grouped into sales regions for reporting purposes. This requirement is illustrated below:
| Analysis Dimension | Sales Area Analysis Codes | Sales Region |
|---|---|---|
| Sales Area | NTH - UK Northern Area | UK - United Kingdom |
| STH - UK Southern Area | UK - United Kingdom | |
| FR - France | EU - Europe | |
| GER - Germany | EU - Europe | |
| IT - Italy | EU - Europe | |
| US - USA | USA - United States | |
| HK - Hong Kong | PA - Pacific | |
| AU - Australia | PA - Pacific |
You could build a code for each region into the sales area code to create composite codes for each different combination. For example, create a sales area called PAAU for Australia. You could then use the SunSystems report writers to report separately on this element of the code. However, if using this method, the sales regions are reorganized, the analysis codes may become misleading.
A more flexible approach is to use an 'analysis hierarchy' to define the relationships between the sales area codes and sales region codes.
Using the hierarchy means that only the sales area code needs to be referenced on sales related ledger transactions. The sales region is derived from the sales area using the hierarchy.
A sales report can show two levels; one where each sales area is shown separately within region, and another which shows the total sales for each region, such as totals for the United Kingdom or Europe.
If the sales areas are reorganized into different sales regions, the sales region hierarchy can be changed to reflect the new structure without altering the analysis codes. The analysis codes referenced on the existing transactions are still correct, because they do not include a region code, and can be analyzed into the new regional reporting structure automatically.
Setting up analysis hierarchies is simple, you just need to carry out a few extra tasks when you define your analysis dimensions and codes.
Multiple Hierarchies
Analysis dimension codes can belong to a number of different hierarchies, enabling many different reporting requirements to be built off the same base of analysis codes. For example, you may have an analysis dimension containing all of your products, and wish to report on these by product category, and product size.