The second level &1 must be greater than the first level &2

What causes this issue?

You want to define hierarchy level &V1& as the second identifying level
of the functional location. However, the first identifying level is &V2&
.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Choose an identifying level greater than the first level (&V2&).

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.