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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / what is the use of fin...
Microsoft Dynamics AX (Archived)

what is the use of financial dimensions

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Posted on by subashini 858

what is the use of financial dimensions.can anyone suggest me the proper answer.till now i did not receive the proper answer.if dont give he financial dimensions which area would be effected.

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  • Suggested answer
    Brandon Wiese Profile Picture
    Brandon Wiese 17,788 on at

    Financial dimensions form the segments in your accounting structure.  They are not required, but allow for extra dimensions (no pun intended) of analysis in financial reporting.  Financial dimensions are found pretty much everywhere, and when assigned to different entities (customers, items, orders, etc.), they are combined and posted into the general journal as appropriate.

  • Suggested answer
    Pranav Kumar Profile Picture
    Pranav Kumar Microsoft Employee on at

    Hi;

    As suggested, the main use of financial dimensions is for reporting purpose. Financial dimensions also helps accountant in managing accounting, Chart of accounts effectively.

    For example, suppose a company maintain travel expense account and they want to track travel expenses per employee. In earlier days, companies used to create each account for travel and expense combination, still this is used in some system like Tally. This was cumbersome and error prone.

    Now with financial dimension, you can create employee as dimension and make it mandatory. While posting voucher, the account has to select the employee. This way the reporting visibility (employee wise travel expense) can also be achieved and ledgers will also be limited.

    Above was just s small example of financial dimension, it has many more uses.

    Pranav

  • Community Member Profile Picture
    Community Member on at

    Financial dimension is use for categorize your company. Financial dimension is extra dimensions that you can added to your GL. It helps you detailing your financial reporting.

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