SAP Message USMD2262 - Data model &1: 'Hierarchy Relationship' not possible for entity type &2

Diagnosis Entity type &v2& does not allow hierarchy relationships because in datamodel &V1& the Hierarchies field for this entity typeis set to not allow hierarchies. Procedure Change the Hierarchies field for entity type &V2& in data modelV1, or select an entity type for which hierarchies are defined.