Hi Rakesh,
Site dimension in AX could be used to indicate information related to Supply Chain Management, it is a higher level of the Warehouse, more than one warehouse could be linked to one site, and that give you deeper analysis of the purchasing, inventory, and sales as well.
We have many option to utilize the Site Dimension, we can make it represents country/region/state all options are upon business requirements.
The site dimension could be a control point in the inventory items as well, where the user could not perform transaction without identifying the site dimension, and we have option to let AX validate on item site dimension, where the user could not use change site.
The site could reflect financial dimension, and generate an entry in transfer order between two financial dimensions
Activate Site dimension in AX:-
Administration->Setup->System->Multi site activation
Activate
Create site dimension
Inventory management->Setup->Inventory breakdown->Sites
Here we identify site code, description, time zone (it is important if you operate in multi country), and site address
Link site to financial dimension
Inventory management->Setup->Posting->Dimension link
Select financial dimension, and activate
Set mandatory site storage dimension
Inventory management->Setup->Dimensions->Dimension Groups
Here set mandatory site during transactions, and other options.
Site specific order setting and default order setting
Inventory management->Common forms-> Setup button-> Site specific order setting
Inventory management->Common forms-> Setup button-> Default order setting
Here set default site, and could make it a mandatory where the user could not change it
Hope these information gives you insights regarding Site Dimension in AX