The Level field is used to define the position of an Organizational Unit Type within the organizational hierarchy. Level 1 represents the highest organizational level, while higher values represent lower levels.

Retail Organization

A retail organization has a central office, regional units, and individual stores.

Configuration:

• Head Office – Level 1
• Region – Level 2
• Store – Level 3

This creates a hierarchy where Stores are organized under Regions and Regions under the Head Office.

Production Organization

A manufacturing organization consists of a central office, individual production plants, and departments within each plant.

Configuration:

• Head Office – Level 1
• Production Plant – Level 2
• Department – Level 3

This creates a hierarchy where Departments are organized under their respective Production Plants.

Direct Branch Structure

For an organization where individual branches report directly to the central office:

Configuration:

• Head Office – Level 1
• Branch – Level 2

This creates a simpler two-level hierarchy without an intermediate organizational level.