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Next level matrices are created when:

• the parent level matrix has north items marked "C" for cascade

• and.. the parent level matrix has been published.

FAQ:

Where do I set the "C"?

When editing the North Items, choose AP or C.  (see image)

How do I change the owner of the second level?

The owner of the second level is determined by resource assigned to the  cascading North priority on the parent level

Why can't I change the south and west areas on my second level?

South and west items are cascaded from the parent level and can only be changed at the parent level.