Difference between Operating Unit Type and Custom Dimension

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Posted on by MYGz

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Hello,

I have a structure like:

Main Account - Department - Division - Cost Center

For the Division dimension, I guess I will have to go for Custom Dimension. Is there any benefit in not going for custom dimension and instead pick something other like Value Stream (which belongs to manufacturing and totally unrelated)?

Appreciate any tips.

Thanks.

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saurabh bharti 15,039 Moderator on at

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Benefit of using standard financial dimension be it operating unit or any other is you need not to maintain master data separately.

Apart from this these operating units are used as function and controls like operating unit in purchase requisitions, as part of organization hierarchy etc..

You can use custom dimension only thing is you need to maintain the demission values.

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MYGz 2,166 on at

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Thanks for insight Saurabh,

What do you mean by maintain? Don't I have to create values for both scenarios manually? Though we can enter more data on the masters as opposed to just a custom dimension which can only have key value pair.

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Ramit Paul 22,797 Most Valuable Professional on at

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Hello,

For standard dimension, you create values in respective units, such as fixed asset you create and a dimension value is also created.

For custom dimension this doesn't happen.

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saurabh bharti 15,039 Moderator on at

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That's right

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Ludwig Reinhard Microsoft Employee on at

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Hello MYGz,

In addition to what was already mentioned, I see an advantage of operating unit type dimensions in the fact that they can be included in hierarchies that you can use in your financial reports. That can be really nice and handy especially if you change your structures internally later on.

Best regards,

Ludwig

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MYGz 2,166 on at

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Thank you all for the inputs.

@LudwigReinhard So do you suggest using Value Stream for Division even though it's not connected at all? What can be the drawbacks of using Value Stream since it's associated with Manufacturing?

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André Arnaud de Cal... 301,037 Super User 2025 Season 2 on at

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Hi MYGz,

There would only be an impact if you are using manufacturing and also need this dimension. Next to the reporting benefit mentioned by Ludwig, you can also filter and control valid combinations when entering journal lines with the dimensions.

If you are not completely sure about using the Value Stream, you can also create a new operating unit type as extension. This would require some development effort.

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