Financial Dimension

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I am using Dynamics AX 2012.  I have set up two legal entities.  Under each i have set up business units.  Say Business using A,B for legal entity 1 and C,D,E,F for second legal entity.  After that i have enabled account structure with financial dimension that uses the value of Business units. Now All my ledger accounts  have Business unit as dimension. Now i am going to create a Purchase Order.  Now i am in first legal entity. So in the purchase line when i try to select Business unit, It is showing all the Business units. i.e there is no filtering based on business unit.  Suggest me the setup requirements for filtering Dimension values in PO based on legal entities.

Verified Answer
  • Hi,

    On the PO line, yo can indeed specify a wrong business unit, but posting to the ledger is not possible, so this should be corrected then anyway.

    Within the relationship you can only create a relation between dimension values of organizational units which are structured in an organization model. A relation with the legal entity is not supported.

    kind regards,

    André Arnaud de Calavon  |  Microsoft Dynamics AX Solution architect  |  My blog  |  My company

    This post is my own opinion and does not necessarily reflect the opinion or view of my company, Microsoft, both its employees, or other MVPs.

All Replies
  • Hi,

    Please understand that all dimensions in AX2012 are shared. Business units are also shared in AX2012.

    To achieve this, you can create two separate account structures for the Business unit. In the first you set a filter on A and B. The second you set a filter on C, D, E and F.

    If you are using AX2012 R2 version, you can setup the account structures per legal entity in the Ledger form (General ledger, Setup).

    In all other versions you have create a chart of account per legal entity as the account structures are linked at the chart of accounts here.

    kind regards,

    André Arnaud de Calavon  |  Microsoft Dynamics AX Solution architect  |  My blog  |  My company

    This post is my own opinion and does not necessarily reflect the opinion or view of my company, Microsoft, both its employees, or other MVPs.

  • Hi Andrews you are right. I am using separate Account structure for balance sheet and P&L accounts for each company. And i applied filter in dimension value.  So in Financial Vouchers that includes p&l or BS accounts filtering applying properly.  

    But for control accounts to be used in Inventory posting setup (material uninvoiced, purchase expenditure uninvoiced supplier control acct etc am using common account structure.  So in Purchase order when i am selecting dimension in line, combo is displaying all business units.

    And i read somewhere that in accounting structure configuration -> Ribbon Setup -> Relationship option can do something in this regard. Is there any option for filtering if i am using same account structure.

  • Hi,

    On the PO line, yo can indeed specify a wrong business unit, but posting to the ledger is not possible, so this should be corrected then anyway.

    Within the relationship you can only create a relation between dimension values of organizational units which are structured in an organization model. A relation with the legal entity is not supported.

    kind regards,

    André Arnaud de Calavon  |  Microsoft Dynamics AX Solution architect  |  My blog  |  My company

    This post is my own opinion and does not necessarily reflect the opinion or view of my company, Microsoft, both its employees, or other MVPs.

  • Hi All ,

    Can any one explain the difference between  Legal Entity Vs Business unit in AX 2012 ? ( Even i have gone through the manuals , did not understand )

    Thanks in Advance.

  • Hi Lally,

    The legal entity is a company or an administration, a business unit is an organizational entity which can be used across legal entities.

    kind regards,

    André Arnaud de Calavon  |  Microsoft Dynamics AX Solution architect  |  My blog  |  My company

    This post is my own opinion and does not necessarily reflect the opinion or view of my company, Microsoft, both its employees, or other MVPs.

  • Hi Andre ,

    Can you give practical example of business unit of a legal entity ?

  • I hope this example will help you:

    Within a company called "Contoso Enterprise Solutions" there is focus on two markets for implementing solutions.

    - Retail

    - Manufacturing

    For both business units we want to be able to track turnover and costs for the profitbility.

    Now we can have:

    - Legal entity: "Contoso Enterprise Solutions"

    - Business Unit: Retail and Manufacturing

    Next example:

    We have two companies:

    - Contoso Consulting

    - Contoso Development

    The business units are the same as the previous example.

    Now for both legal entities we can use both business units.

    Note that using the business units as financial dimensions this scenario will work. If you want to create an organization hierarchy including both companies and the business unit per company as a matrix organization, this is not supported by the current functionality. you cannot attach a internal organization twice in the same hierarchy.

    kind regards,

    André Arnaud de Calavon  |  Microsoft Dynamics AX Solution architect  |  My blog  |  My company

    This post is my own opinion and does not necessarily reflect the opinion or view of my company, Microsoft, both its employees, or other MVPs.

  • Hi Andrew,

    So Relationship we can set inside a legal entity only.  That means if we have a structure like  legal entity -> Business Unit -> Department (Separate department for each business unit), we can set relationship so that when we select a Business unit  only department coming under that business unit will display  for dimension selection.

    can you explain the steps for creating relation  in this scenario.

  • Hi,

    The relationship is not inside a legal entity only. The root node can be a "main business unit" or value stream as well. Then you build a relationship that can be used in multiple companies. The relation on journals is lot looking at the legal entity; only the organization units itself.

    On your account structure form you can click "Relationships". Then click from the possibilities the relation you want to enforce. Be sure you then have setup an accountstructure with the dimensions Business Unit and Department (from your example).

    kind regards,

    André Arnaud de Calavon  |  Microsoft Dynamics AX Solution architect  |  My blog  |  My company

    This post is my own opinion and does not necessarily reflect the opinion or view of my company, Microsoft, both its employees, or other MVPs.