Creating hierarchies is important in both tabular and multidimensional models. Hierarchies provide a better understanding of data to business users, and help them slice and dice reports and data more easily. Hierarchies can be created from a single table or from nested tables. In multidimensional, creating hierarchies from a single table or multiple tables doesn't make a difference, and both can be done simply with drag-and-drops. But in tabular, there are some differences; examples in this section show how to create hierarchies in a tabular model.