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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Cost Accounting Setup
Small and medium business | Business Central, N...
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Cost Accounting Setup

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Posted on by JohnnyLM 187

Hello BC Forum,

I am trying to setup Cost Accounting and the following occurs:

First of all

I have created cost types. I have created cost centers and cost objects. I have created dimensions.

I have done Cost Accounting Setup. When I leave the Cost Accounting Dimensions field open, no transfer will be made with "transfer G/L Entries to CA". So I filled in the field Cost Center Dimension with a Dimension which I set up (actions / update Cost Acctg. Dimensions). However I have multiple dimensions and I can't fill them all in here, see screenshot.

Furthermore I created a purchase invoice: one without a dimension and one with a dimension. The one without a dimension could not be allocated. The one with a dimension did.

My questions are:

1. In Cost Accounting Setup there is only one field in Cost Accounting Dimensions. When I want to transfer all G/L Entries to CA, for every dimension I need to change this field in Cost Accounting Setup? I have multiple cost centers with dimensions

2. Do dimensions always need a value? I mean when I have a dimension Admin, do I have to fill in Admin also as a Dimension Value? I tried both and only the one with the value could be saved within a purchase invoice.

3. Do cost centers always need a dimension? Without I seems to me that Cost Accounting does not produce any values.

4. Does invoices always need one or more dimensions for having their amounts transfered into cost accounting?

5. Can Cost Accounting being setup without dimensions?

pastedimage1622260578728v1.png

Thanks for the answers.

Greetings,

John

I have the same question (0)
  • Verified answer
    Dirk Profile Picture
    Dirk Microsoft Employee on at

    Hi John,

    I think you can only use a single dimension from General Ledger as Cost Center in the Cost Accounting.
    And I think yes, you alwas need the dimesion and the dimensions need dimension values.

    Accounting for Costs - Business Central | Microsoft Docs
    Setting Up Cost Accounting - Business Central | Microsoft Docs
    When you set up cost accounting, you must make sure that all entries are assigned to a cost type as well as a cost center    OR      a cost object.
    That means that each cost entry must have a cost type assigned and a cost center code      OR     a cost object assigned.
    This rule ensures that each cost entry appears in either the cost centers or the cost objects, but never in both places.

    Transferring and Posting Cost Entries - Business Central | Microsoft Docs

    I hope this helps
    Thanks
      Dirk

  • JohnnyLM Profile Picture
    JohnnyLM 187 on at

    Hello Dirk,

    Thanks for the answer. It is a lot clearer to me now how to use dimensions in relation to cost centers / cost types / cost objects.

    The only thing is that I find it hard to relate BC Cost Accounting setup to the following (for a IT company):

    Normally cost centers (for example Admin / HR) allocate their indirect costs to other (main) cost centers (for example IT Development / Production / Infrastructure) or directly to the cost objects (Projects).  The direct costs go directly to the cost objects. The cost objects are used to determine the cost price.

    I can see the allocation been made in BC, but I don't see the overall view / possibility to see the total costs of each project in some report or otherwise. That is not explained in MS Docs, or not clear to me.

    In MS Docs only the setup has been explained, not a possible outcome what the setup could result in. This would be a great extension of the learning path / MS Docs, what to expect.

    Greetings,

    John

  • Suggested answer
    Dirk Profile Picture
    Dirk Microsoft Employee on at

    Thanks John

    Yes, I see what you mean and think this is a very valid ask.

    I will forward your feedback to the Product Team.

    Thanks again

     Dirk

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