At what level should groups and departments be placed in the CRM?

If you sell to larger organizations, the question quickly arises: is the customer the corporate group, the company, or the department?

Use hierarchies

Dynamics 365 supports parent and subsidiary accounts. This allows you to view the group's total revenue while also tracking each entity.

Model the level you sell to

If the department makes the decisions and is invoiced, then the department is the customer. The corporate group is added above it as a grouping. If you model the hierarchy based on the legal structure without reflecting the sales process, you end up with a hierarchy that no one uses.

Decide where the agreement belongs

Should the sales opportunity be assigned to the division or the group? Without a rule, opportunities end up being assigned randomly, making both the pipeline per customer and the reports per group inaccurate.

Keep it shallow

Two levels are enough for most organizations. A four-level hierarchy is rarely maintained, and then it is worse than having no structure at all.