What is the purpose of External Account Hierarchies?

The purpose of External Account Hierarchies is to allow the sharing of data from child accounts with parent accounts. This hierarchical structure facilitates a clear and organized way to manage data sharing across different levels of accounts. By enabling child accounts to share data up to their parent accounts, organizations can streamline their data visibility and reporting processes.

This functionality is particularly useful in complex business environments where multiple accounts exist under a single parent account, allowing for a consolidated view of data while maintaining relationships between various levels of the hierarchy.

In contrast, the other options address functionalities that are either not inherent to account hierarchies or pertain to different aspects of account and data management, such as data sharing from parents to children or role assignments based on ownership, which do not reflect the primary purpose of External Account Hierarchies. Similarly, restricting access among sibling accounts does not align with the basic principles of hierarchical sharing, as sibling accounts often operate independently of each other within the hierarchy.