Your company might purchase products or services through a national vendor with local offices. If your company has locations in different cities, each location might purchase goods from the local office of the vendor.
You can create branch records for a vendor company so that you can track purchasing either at the branch level, or with the vendor as a whole.
The branch hierarchy can only be one level deep, with a parent company record and child branch records. Child records cannot be parents of other records. Parent records cannot be children of other records.