It is possible to set up your organisation Departments and then allocate contracts to one or more departments for searching and reporting purposes. The departments can be hierarchical to 3 levels. You could for example model the following structure:
Tip: If you don't use the word "Departments" in your organisation, you are able to change this field to a name that you prefer. To change a field name you need to be a Admin user. See Changing Form Layouts that includes information about how to change the display name of an existing field.
For more detailed information about the Departments fields on contracts, please refer to the Setting up your Department Structure article