A dimensional hierarchy is created in the BMM layer of a repository to calculate level based measures and to create interactive reports/dashboards with drill down functionality.
A dimension hierarchy can be created manually as well as automatically. Manual process involves right clicking on BMM layer> New Object> Dimension, entering a name; right clickking on this new dimension and create New Level.
Levels are base on the business definition or hierarchy of a dimension, a classic example; year> quarter> Month> week> Day. A hierarchy will have at least two levels, Grand Total Level and Detail Level. For each level we have to define the number of elements. This is always 1 for the Grand Total Level and next levels are the ratio from one level on top to the bottom.
When creating a dimension automatically, we have to right click on the dimension and click Create Dimension. This will automatically create the two levels Grand Total and Detail Level.
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