Explanation Ref: Implementing-Project-Financial-Management-and-Grants-Management.pdf Chapter 3 - Define Project Organizations Page # 12 Topic - Selecting Organization Hierarchies for the Business Unit The following conditions are required for an organization to be eligible to be a project expenditure organization: * You must assign the Project Expenditure Organization classification to the organization. * The organization must belong to the hierarchy that you specify in the project implementation options for the business unit.