What's the difference between organizations and organization hierarchies?

Organizations are departments, sections, divisions, companies, or other organizational units in your enterprise. You can gather collections of organizations into organization hierarchies.

Organization hierarchies help you manage expenditure and reporting data, and coordinate the project-owning organizations in your enterprise.

During implementation, you select the organization hierarchy type for use in Project Financial Management applications. You can optionally choose not to use organization hierarchies. If you select to use a hierarchy, you select either the department hierarchy tree structure or the generic organization hierarchy tree structure. Then you assign hierarchies to the project implementation options for each business unit used in Project Financial Management applications.

Note: If you use either the department or the organization hierarchy tree structure hierarchy type, you must assign the same organization hierarchy type that you set up in Oracle Fusion Global Human Resources.