Expense Management E9.1 - Setting up Distribution lists

In the set up of the distribution list with a structure type of EA, who must be set as the parent record if the employee is set to Group 1, 1st line approver and alternate approver set to Group 2 and senior manager set to group 3. See my set up attached. In the attached example I have used my own address book record as the parent but this is not correct. All the literature I have read is confusing. It has hard to understand the parent / child relationships in the examples used in the demo data and screen