4.2.2.2 Use Cases for Planning by Product Hierarchy

The first use-case for Planning by Product Hierarchy is to enable iterative planning, first by senior management, and then by Planning Analysts who are “responsible” (in a budgeting context) for meeting agreed upon targets.

The secondary use-case for Planning by Product Hierarchy is when you have a very large number of Products and/or Planning Centers and want to avoid having to plan for so many combinations of Planning Center + Product + Currency.

For the second use case, be aware that you can choose a Planning Product chart-of-account which may differ from the chart-of-account you may be using for ALM or FTP and PFT or other OFSA applications. Your Planning chart-of-accounts may not need to be as detailed as other charts-of-account that are used for purposes other than budgeting and planning.