Financial dimensions

Use financial dimensions to further categorize financial transactions. Financial dimension values become segments within the ledger account and you can use them for further analysis, such as generating a profit and loss financial statement by a dimension or a trial balance by dimension.

Financial tags (tags) are an alternative to financial dimensions. An organization can create up to 20 user-defined financial tags and enter values for them on transactions. For more information, see Financial tags. Also, explore the differences between the two in the document Differences between financial tags and financial dimensions.

This article explains the various types of financial dimensions and how to set them up.

Create financial dimensions

Use the Financial dimensions page to create financial dimensions that you can use as account segments for charts of accounts. There are two types of financial dimensions: custom dimensions and entity-backed dimensions.

Financial dimension naming requirements

When you create a financial dimension, the dimension name must start with a letter or an underscore, followed by any combination of letters, numbers, or underscores. The dimension name can't use reserved system field names such as RecId. If you don't meet these requirements, you receive The financial dimension name ... contains invalid characters error message.

For example, some valid dimension names include Department, CostCenter, _CustomDim, and Project_1.
Invalid dimension names include:

• 123Dept - starts with a number
• Cost-Center - contains a hyphen
• RecId - reserved system field name

Custom dimensions

To create a user-defined financial dimension, in the Use values from field, select Custom dimension. Custom dimensions are shared across legal entities, and the values are entered and maintained by users.

You can specify a dimension value mask to limit the amount and type of information that can be entered for dimension values. You can enter characters that remain the same for each dimension value, such as letters or a symbol.

You can also enter number signs (#) and ampersands (&) as placeholders for characters that change every time that a dimension value is created. Use a number sign (#) as a placeholder for a number and an ampersand (&) as a placeholder for a letter. The field for the format mask is available only when you select Custom dimension in the Use values from field.

Example

To limit the dimension value to the letters "CC" and three numbers, enter CC-### as the format mask.

Entity-backed dimensions

To create an entity-backed financial dimension, in the Use values from field, select a system-defined entity to base the financial dimension on. For entity-backed dimensions, the values are defined somewhere else in the system, such as in Customers or Stores entities. Some entity-backed dimensions are shared across legal entities, whereas other entity-backed dimensions are company-specific. Dimensions that are company-specific (also known as company-striped dimensions) are only visible when accessed as a user from the associated company.

For example, to create dimension values for projects, select Projects. This allows any value from the project table to be used as a dimension value directly. A dimension value is then created for each project name. The Financial dimension values page shows the values for the entity. If those values are company-specific, the page also shows the company.

Financial dimension values

After you create a financial dimension, use the Financial dimension values page to create, view, or assign additional properties to each financial dimension value.

For a custom financial dimension, use this page to create and edit dimension values. You can only enter or edit the Dimension value and Description fields for custom dimensions.

For an entity-backed financial dimension, you can't create dimension values from this page. You also can't edit the dimension value and descriptions from within the page. For example, let's say you created the Project financial dimension previously described. On the Financial dimension values page, you can't edit the project Dimension value or Description. This information is taken directly from the project setup. If a new project value is necessary, you must create it from the Project page.

Activating dimensions

When you activate a financial dimension, the table updates to include the name of the financial dimension. Deleted dimensions are removed. You can create and edit dimension values before you activate a financial dimension. However, you can't consume a financial dimension anywhere until you activate it. For example, you can't add a financial dimension to an account structure until you activate the financial dimension.

When you select Activate all, the system updates all inactive or renamed dimensions to active, which the Status changes field shows. The system must be in maintenance mode when activating financial dimensions.

Translations

Use the Text translation page to translate the following text into various languages:

• Dimension name from General ledger > Chart of accounts > Dimensions > Financial dimensions > Translations.
• Financial dimension value description from General ledger > Chart of accounts > Dimensions > Financial dimensions. Select custom financial dimension > Dimension values > Translations.
• Main account name from General ledger > Chart of accounts > Accounts > Main accounts > Name translations.

When you enter your financial dimension name and financial dimension value description, the system assumes you enter those values in the system language. You can see the system language in the Default language code shown on the Text translation page.

If you don't enter the values in the system language, you might not get the expected results. To fix the problem, change the financial dimension name and financial dimension value description to the system language. The translated text isn't necessary for the system language.

Example

The system language is set to "es" (Spanish).
A new financial dimension is created. You enter the dimension name in English, not Spanish: "Ownership."

• You can define the name in a non-system language, but it's not recommended. You create two translations for the "Ownership" dimension name:
• "es" (Spanish) = Propiedad
• "de" (German) = Besitz

User 1 has a user language of "de." When they see the dimension name, it displays as "Besitz."

User 2 has a user language of "es." When they see the dimension name, it displays as "Ownership." The dimension name of "Ownership" is shown because the user language is the same as the system language. As a result, the system doesn't look for any translations.

Legal entity overrides

All custom dimensions and some entity-backed dimensions, such as dimensions created from an operating unit, are global. When you use global values, all dimension values for that dimension are active for all legal entities that include that dimension in their account structure.

But, not all dimensions are valid for all legal entities. Additionally, some dimensions might be relevant only for a specific period. In these cases, use the Legal entity overrides section to specify the companies that the dimension should be suspended for, the owner, and the period when the dimension is active.

Example

Department has dimension values of 100, 200, and 300. USMF, USSI, and DEMF all use the Department dimension. DEMF is only permitted to use department 100 and 200. To restrict DEMF from using Department 300, create a legal entity override where you mark the dimension value as Suspended. USMF and USSI still have full access to departments 100, 200, and 300.

Renaming financial dimensions

When working with financial dimensions, you might need to rename dimension values or the dimensions themselves. However, several requirements and considerations affect your ability to rename financial dimensions and their values.

• Change entity-backed dimensions through their source entity - You can't rename entity-backed dimension values through the Financial dimension values page. Rename them on the corresponding entity page. For example, rename Department dimension values in the Operating units page where the department is defined.
• Ensure dimension value names are unique - Dimension value names must be unique across the system. To check for duplicates, go to General ledger > Chart of accounts > Dimensions > Financial dimensions, select the dimension, then select Dimension values. If a duplicate exists, choose a different name.
• Verify you have sufficient privileges - Your user account must have the necessary roles and privileges to modify dimension values. If you're unable to make changes, contact your system administrator to verify permissions.

Deleting financial dimensions

To help maintain referential integrity of the data, you can rarely delete financial dimensions. If you try to delete a financial dimension, the system evaluates the following criteria:

• Was the financial dimension used on any posted or unposted transactions, or in any type of dimension value combination?
• Is the financial dimension used in any active account structure, advanced rule structure, or financial dimension set?
• Is the financial dimension part of a default financial dimension integration format?
• Was the financial dimension set up as a default dimension?
• Was the financial dimension unselected from the Financial Reporting setup?

If any of these criteria are met, you can't delete the financial dimension.

Financial dimensions as legal entities

You can use financial dimensions to represent legal entities. You don't need to create the legal entities in Dynamics 365 Finance. However, financial dimensions aren't designed to address the operational or business requirements of legal entities. The intercompany accounting functionality in Finance is designed to address only the accounting entries that each transaction creates.

Before you set up financial dimensions as legal entities, evaluate your business processes in the following areas to determine if this setup works for your organization:

• Inventory
• Sales and purchases between financial dimensions and legal entities
• Sales tax calculation and reporting
• Operational reporting

Here are some of the limitations:

• You can use sales tax functionality only with legal entities, not with financial dimensions.
• Some reports don't include financial dimensions. Therefore, to report by financial dimension, you might have to modify the reports.

Default dimension values

You can use values from master records, such as customer and vendor, as default values in new dimensions. When you create the new dimensions, you enter the master record ID in the dimension values for those master records. For example, when you create a new customer, you enter the customer ID in the customer dimension. When you create sales orders, invoices, or other documents that require a customer ID, the existing defaulting rules add the customer ID to the document.

A setting in the dimension controls this feature. This setting is named Copy values to this dimension on each new DimensionName created, where DimensionName is the name of the dimension. By default, the feature is turned off. However, you can turn it on at any time.

If records already exist for the dimension, turning on the feature updates the master records. However, existing documents and transactions aren't updated.

If you're using a template to create a master record, make sure that the template value for the master dimension is blank. For example, if you're creating customers from a template, make sure that the customer dimension in the template is blank. The customer dimension value defaults from the new customer number when you create the new customer.

Derived dimensions

You can configure a dimension so that information for other dimensions is automatically entered when you enter that dimension in a document. For example, if you enter cost center 10, a value of 20 can be automatically entered in the department dimension.

Set up derived values on the dimensions page.

1. Select a dimension and then select Derived dimensions.

   The Derived dimensions page includes a grid. The selected dimension segment is the first column in this grid.

2. Add the segments that you want to derive. Each segment appears as a column.

Enter the dimension combinations that you want to derive from the dimension in the first column. For example, to use the cost center as the dimension that the department and location derive from, enter cost center 10, department 20, and location 30. Then, when you enter cost center 10 in a master record or on a transaction page, department 20 and location 30 are entered by default.

Overriding existing values with derived dimensions

By default, the derived dimension process doesn't override existing values for derived dimensions. For example, if you enter cost center 10, and no other dimension is entered, department 20 and location 30 are entered by default. However, if you change the cost center, the values that you already established aren't changed. Therefore, you can establish default dimensions on master records, and those dimensions aren't changed by derived dimensions.

You can change the behavior of derived dimensions to override existing values by selecting the Replace existing dimension values with derived values checkbox on the Derived dimensions page. If you select this field, you can enter a dimension with derived dimension values and those derived dimension values override any values that already exist. Using the previous example, if you enter cost center 10, and no other dimension is entered, department 20 and location 30 are entered by default. However, if the values were already department 50 and location 60, the values change to department 20 and location 30.

Derived dimensions with this setting don't automatically replace the existing default dimensions values when dimension values are defaulted. Dimension values are only overridden when you enter a new dimension value on a page and there are existing derived values for that dimension on the page.

Preventing changes with derived dimensions

When you use Add segment on the Derived dimensions page to add a segment as a derived dimension, you see an option at the bottom of the Add segment page that you can use to prevent changes to that dimension when it's derived on a page. The default setting is off, so it doesn't prevent the derived dimension values from being changed. Change the setting to Yes to prevent the dimension from being changed after it is derived. For example, if the value for the Department dimension is derived from the value of the Cost center dimension, the Department value can't be changed if the Prevent changes setting is Yes.

This setting doesn't prevent changes if the dimension value is valid but isn't listed in the derived dimensions list. For example, if Department 20 is derived from Cost center 10 and you enter Cost center 10, then you can't edit Department 20. However, if you enter Cost center 20 and it's not in the list of derived dimensions for Cost center, then you can edit the Department value.

In all cases, the account value and all dimensions values are still validated against the account structures after the derived dimensions values are applied. If you use derived dimensions and they fail validation when used on a page, you must change the derived dimensions values on the Derived dimensions page before you can use them in transactions.

When you change dimensions on the Financials dimensions FastTab, the dimension that is marked to prevent changes isn't editable. If you're entering an account and dimensions into the segmented entry control on a page, the dimensions are editable. However, when you move the highlight off the segmented entry control and move to another field or take an action, the account and dimensions are validated against the derived dimensions list and the account structures to ensure that you entered the appropriate values.

Derived dimensions and entities

You can set up the derived dimensions segments and values by using entities.

• The Derived dimensions entity sets up the driving dimensions and the segments that are used for those dimensions.
• The Derived dimensions value entity lets you import the values that should be derived for each driving dimension.

When you use an entity to import data, if that entity imports dimensions, the derived dimension rules are applied during the import unless the entity specifically overrides those dimensions.

Financial dimension service

You can access the Financial dimension service add-in in your Microsoft Dynamics Lifecycle Services environment. It provides improved performance when you use the Data management framework to import a journal that has a large number of lines. To use the service, you must enable it on the Financial dimension service parameters page. Currently, the service works only on imported journals. In addition, it can currently process only general journals where the Ledger account type is set on the journal lines. Other account types on journal lines, such as Customer, Vendor, and Bank, aren't currently supported. This service isn't invoked when derived dimensions are set up in the system.

The Financial dimension service provides improved performance when you import journals by using a new service that runs in parallel to the data import. It runs only on the main account and financial dimension data in the journal, and it generates the dimension combinations that are specified in the ledger account string field on the journal lines. The processing converts this string into the structured data storage that the Financial dimension framework uses throughout the rest of the product for validation, summary reporting, and inquiries. For more information about summary reporting of financial dimension data, see Financial dimension sets.

For more information, see the following topics:

• Define financial dimensions
• Maintain financial dimension default templates