Organization Hierarchy Reporting

Summary

How to Correctly Report the Levels of an Organization's Hiearchy?

Content

I am trying to create an Organizational Hierarchy report that shows the number of Contacts for each company within a hierarchy.

I have been able to create a report that correctly displays the various levels of the hierarchy (see attached export of my report).

However, the report is not correctly displaying sub-level orgs to the correct parent org. 

For example, this is how the hierarchy displays in the relationship tab. You can see that Org C and D are under the parent of Org B.

Organization A

          Organization B