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What is the relevance of Project Organization Tree

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Hello Team

What is the exact usage of the Project Organization Tree? As per my understanding, we can segregate Organizations based on Project Organization Tree. For Example, If Department A is task owning Org and I add a node below Department A like A1, A2, and A3 as Project Expenditure Organization. Department B is Task Owning Org and Below that I have added B1, B2 & B3 as Project Expenditure Org. So, while booking the cost for a Project (Task Owning Org is Department A), I should be able to see only A1, A2 & A3 as an Expenditure Org. But in

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