Hierarchical relationships connect two business entity records in a hierarchy. When you need to represent relationships in a tree-like structure, use hierarchical relationships. You can relate records that belong to the same or different business entities.
For example, the Informatica record is the parent of the John Smith record. You can view these relationships in a hierarchy or a relationship graph.
Examples of hierarchical relationships
To view product categories and their materials, you can create hierarchical relationships between the Category and Material business entities.
The following image shows the Material Classification hierarchy model that relates the Category and Material business entities:
The following image shows the Material Classification hierarchy created based on the Material Classification hierarchy model: