Hierarchies play very important role in reporting. SAP BW supports hierarchies very well. Most of the hierarchies are maintained in SAP R3 source system, you just need to create the datasource and extract them to BW. However, in some cases you need create an hierarchy manually and load it from flat files. SAP also supports loading hierarchies from flat files.
In SAP BW 3.5 version one could directly load an hierarchy from a flat file without the need to create a datasource. Where as in BW 7.0 one needs create a flat file datasource first and then load the hierarchy using the flat file datasource.
Below are articles/blogs with more details on loading hierarchies into SAP BW.
SAP Help
1. Loading Hierarchies from different source systems : This SAP Help article gives step by stem instruction on loading hierarchies from SAP Systems, BAPI or files. Click here to see complete article.
2. Uploading Hierarchies from Flat Files :This SAP Help article gives details instructions for uploading hierarchies from flat files into BW 7.0 systems. Click hereto see complete article.
Blogs with Screenshots
1. Loading Hierarchies from a flat file in BW 3.5 systems : This is a nice blog from Prakash B explaining basics of of hierarchies and giving detailed instructions with screenshots on creating objects required and loading the hierarchy from a flat file. Click here to see this blog. (You need to login with your SDN id to see this blog, you can register for free if you don't have an SDN id)
Leave a comment or link to other useful resources on loading hierarchies in SAP BW.