Sub locations not supported as much as I had hoped

I've setup a location hierarchy something like this:
Outside Sales
    Outside Sales : Acme, Inc.
        Outside Sales : Acme, Inc : John P. Stewart
        Outside Sales : Acme, Inc : Michelle R. Gomez

I transfered some serialized items to the two lowest locations, then went to the item record to check the on hand counts based on 'Outside Sales'. - I had expected it to report the SUM of the child locations.  Additionally I had hoped on the Serial Numbers tab if I changed the filter to 'Acme, Inc.' it would list all serial numbers from child locations.

You know.... hierarchical.  No dice, it doesn't treat locations like this.  Am I missing something?  What is the point of parent/child locations if you can't report on them?