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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / The Use of Each Operat...
Microsoft Dynamics AX (Archived)

The Use of Each Operating Unit Type

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Posted on by Community Member

Hi All,

What is the use of each organization type in AX 2012 R3 for Business Unit, Department, Cost Center, and Value Stream?

I know from the technet that each of this unit type has its own definition. But what is the difference function for each type? (E.g. in Human Resources, I knew that worker can only be assigned to department, instead of cost center).

Should I just create Department as my financial dimension? Or should I also create cost center? and What about Value stream? Could I just use the unit type department and then naming it to align with my production process? Or is there any function which only available if I use the Value Stream? 

 

I am sorry if my questions is very basic. But I have search anywhere and have not been able to find the right answer.

 

Many thanks in advance,

 

Best Regards,

M.H.

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  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi M. Hasan,

    I am not sure if your questions can be answered without having some additional information on the business, such as the management reporting concept (=> what do you need to analyze), the organizational structure (=> is the company separated into departments or only cost centers) and also the way they produce items (=> do you need to define value streams if you do not make use of lean manufacturing?!). There are a lot of factors and questions that influence what financial dimensions you need to setup and there is no general answer to your questions available without having some additional information.

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    In my case for example I have the company which have let say 20 subsidiaries. Some of the subsidiaries have more than 1 business line. Which in my country there is statutory requirement to not only to prepare the consolidated report based on company structure but also by consolidated segment (business line).

    For this case:

    1. Do I need to use business unit for my financial dimension? Or could I just directly use department/cost center? Then to accommodate my requirement to have report based on business line I could just create grouping of my department/cost center instead of creating 2 financial dimension which are business unit and department?

    2. Based on your answer, what is the consideration of whether using department or only cost center?

    3. Also based on your answer, value stream might be used if I activate the lean manufacturing. What if I only use the production control?

    Regards,

    M.H.

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