Account structures and financial dimensions
Almost every transaction in Dynamics 365 Finance lands on a main account plus financial dimensions. Getting the chart of accounts, account structure and dimensions right is the base for all reporting.
Chart of accounts and main accounts
A chart of accounts is a list of main accounts, each with an account type (Revenue, Expense, Asset, Liability, Balance sheet, and so on). It is shared across legal entities. Each legal entity picks one chart of accounts on its Ledger setup.
Financial dimensions
Dimensions add analysis detail, such as Department, CostCenter, Project or Customer. There are two kinds:
| Kind | Source of values |
|---|---|
| Custom dimension | Values you create by hand or import |
| Entity-backed dimension | Values come from existing data (customers, vendors, projects, items) |
A dimension value can be limited to specific legal entities. After you create or change dimensions, you must update the dimension framework so they are available for use.
Account structures
An account structure defines the order of segments in an account string, for example MainAccount-Department-CostCenter. It also holds constraints:
- A rule states that for a main account (or range) a dimension is required or restricted to certain values.
- An advanced rule structure adds conditions across dimensions, for example if Department is Sales then CostCenter must be 100 to 199.
You must activate a structure and then assign it on Ledger > Account structures. A change to an active structure must be activated again.
Dimension sets
A financial dimension set is a selected group of dimensions with the main account. It is used for account balances, trial balance and financial reporting. It does not control which combinations are valid.
Default dimensions
Default dimensions flow from master records (customer, vendor, item, worker) to transactions. Users can change the default on the transaction line.
Exam traps
- A dimension set is a reporting aid, not a validation. Validation comes from the account structure.
- The chart of accounts is shared, but the account structure can be different per ledger.
- Entity-backed dimensions get their values from the source table, so you cannot type extra values.
- Changing an account structure does not apply until it is activated.
- Selecting Validate on a journal checks the journal, but the preventive control is the structure rules.
Practice questions
Choose an answer, then review the explanation to check your understanding.
1. Posted journals contain invalid combinations of main account and financial dimensions. What should you configure to prevent them?
Show answer
Answer: B.Account structures (with constraints) define which dimensions are valid for a main account. Dimension sets only group dimensions for reporting.
2. Several legal entities must share one chart of accounts but use different dimension rules. What do you use?
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Answer: C.The chart of accounts is shared by the ledgers, while each ledger can use a different account structure built on top of it.
3. Values of the Department dimension must be available only in selected legal entities. What do you configure?
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Answer: A.A dimension value can be limited to specific legal entities by setting the legal entities on the dimension value.
4. Users want to see balances by Department and CostCenter on a balance inquiry page. What do you create?
Show answer
Answer: A.A financial dimension set is a chosen group of dimensions used for balances and reporting.