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What are Tree Labels used for?

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Summary:

Would like to understand more about how tree labels are determined and used.

Content (required):

I was able to find some information on this in Oracle documentation here: https://docs.oracle.com/en/cloud/saas/financials/23b/faigl/tree-labels.html#s20030938. Still looking for some clarity around how these labels are used and what the purpose is? Will it have any impact on downstream apps or reporting?

Version (include the version you are using, if applicable):

23B (11.13.23.04.0)

Code Snippet (add any code snippets that support your topic, if applicable):

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