EPISODE 80| Financial Dimensions in Microsoft Dynamics 365 Finance and operations

Introduction

This tutorial provides a comprehensive guide on managing financial dimensions in Microsoft Dynamics 365 Finance and Operations. Financial dimensions are crucial for categorizing financial transactions beyond standard accounts, allowing for more detailed reporting and analysis. This guide will help you understand how to set up, manage, and effectively use financial dimensions in your organization.

Step 1: Understand Financial Dimensions

• Financial dimensions are additional levels in the structure of financial transactions.
• Common examples include cost centers, departments, and purposes.
• They help in enhancing transparency and reducing errors in financial reporting.
• Avoid creating unnecessary dimensions; only set up those that are essential for your operations.

Step 2: Access Financial Dimension Values

• Navigate to the financial dimension form within Dynamics 365.
• Click on the button labeled "Financial dimension values" to view existing dimensions.
• Here, you can manage dimension values associated with your financial dimensions.

Step 3: Create Custom Dimension Values

• For custom dimensions, you need to manually create dimension values.

To do this, follow these steps

• Open the financial dimension form.
• Select the dimension you want to add values to.
• Click on the “New” button to create a new dimension value.
• Fill in the necessary fields and save your changes.

Step 4: Edit Existing Dimension Values

• You can edit details for existing dimension values by selecting them in the list pane.
• The details will appear on the right side of the screen.
• Use the "General" tab to access shared settings applicable to all companies using the dimension.

Step 5: Block Future Transactions

If you need to prevent future transactions for a specific dimension value

• Set the slider marked "Suspended" to “Yes”.
• Alternatively, enter dates in the fields “Active from” or “Active to” to specify the blocking period.
• This can help manage and control the use of dimension values effectively.

Step 6: Manage Legal Entity Overrides

• On the "Legal entity overrides" tab, you can set additional blocking at the company level.
• This allows you to customize restrictions based on the specific legal entity, enhancing control over financial dimensions.

Conclusion

By following these steps, you can effectively manage financial dimensions within Microsoft Dynamics 365 Finance and Operations. This will improve your financial reporting capabilities and help maintain data integrity across your organization. For further learning, consider exploring additional resources or tutorials to deepen your understanding of Dynamics 365 functionalities.