At the head of the Neoplatonic scheme is the One, which is not a being among beings and not, strictly, describable at all. It is beyond being, beyond thought and beyond number, and Plotinus writes about it chiefly by denial: it is not this, not that, not divided, not in motion. It is also identified with the Good, because everything seeks it. The apparent contradiction of writing at length about what cannot be described is one the tradition acknowledged and treated as unavoidable.
From the One proceeds everything else, and the usual term for the process is emanation. The point of the word is that it is not a decision, not a making, and not an event in time. The One does not choose to create and loses nothing by the procession, in the way that a source is not diminished by what flows from it. This distinguishes the scheme sharply from the biblical account of creation, and the difference became important later, when Christian and Islamic thinkers borrowed the machinery while insisting on a creating will.
Below the One stand two further hypostases. The first is Nous, intellect, in which thought and its object are identical and in which the Platonic Forms exist; this is the level of genuine being and of eternal, non-discursive knowing. The second is Soul, which thinks in sequence rather than all at once and which, facing downward, produces and orders the physical world. Nature and matter follow, matter being the furthest point of the procession and effectively a privation, not an evil substance, in Plotinus, but the absence at which the outflow gives out.
Every level both proceeds from what is above it and turns back toward it, and this double motion of procession and return is the structural principle of the whole system. Proclus formalised it as a triad of remaining, procession and reversion, and made it the engine of a metaphysics worked out in extraordinary detail.
The human soul occupies an unusual position. It belongs to the level of Soul but is present in a body, and Plotinus held that some part of every soul never descends and remains in contemplation above. That claim was rejected by Iamblichus and by most of the later tradition, and the disagreement matters, because it settles whether a human being can ascend by thinking alone.