Mastering Financial Dimensions in Dynamics 365 Business Central
Meta description: Learn how to set up and use financial dimensions in Dynamics 365 Business Central. Covers global and shortcut dimensions, analysis views, best practices, and examples to supercharge financial reporting.
Why dimensions matter
In traditional accounting, every detail requires separate general ledger (G/L) accounts—leading to long, cluttered charts of accounts.
Dimensions in Business Central solve this problem. They act as tags you can attach to transactions, customers, vendors, or items, so you can analyze financial data without creating hundreds of extra G/L accounts.
With dimensions, you can answer questions like:
-
How much profit did we make by department?
-
What were marketing expenses for Project X?
-
Which region generated the most sales this quarter?
Global vs. Shortcut Dimensions
In BC, dimensions come in two flavors:
| Type | Purpose | Where Used | Max Count |
|---|---|---|---|
| Global Dimensions | Primary dimensions used across system | Always available on G/L entries, journals, documents | 2 only |
| Shortcut Dimensions | Additional dimensions for analysis | Available in journals, sales/purchase docs, and analysis views | Up to 6 in addition to globals |
Think of Global Dimensions as your “must-have” tags (e.g., Department, Project), and Shortcut Dimensions as “nice-to-have” extra analysis fields (e.g., Customer Group, Region).
Common examples of dimensions
| Dimension | Example Values | Use Case |
|---|---|---|
| Department | Sales, HR, Finance, IT | Compare costs/revenue across departments |
| Project | Project A, Project B, Project C | Track project profitability |
| Region | North, South, East, West | Regional reporting |
| Cost Center | CC01, CC02 | Managerial cost allocation |
| Customer Group | Wholesale, Retail | Margin analysis by customer type |
Step 1: Set up dimensions
-
Go to Dimensions (Tell Me → Dimensions).
-
Create a new dimension with:
-
Code (short identifier, e.g., DEPT).
-
Name (e.g., Department).
-
-
Add dimension values (the actual options, e.g., Sales, HR, IT).
Example – Department Dimension
| Code | Name |
|---|---|
| SALES | Sales |
| HR | Human Resources |
| FIN | Finance |
| IT | IT Services |
Step 2: Assign global & shortcut dimensions
-
Go to General Ledger Setup.
-
Set your two Global Dimensions (e.g., Department, Project).
-
Define Shortcut Dimensions (up to six more) for additional reporting.
Step 3: Apply dimensions to master data
Dimensions can be defaulted at multiple levels:
| Where | Why | Example |
|---|---|---|
| Customer/Vendor card | Tag all transactions with a default dimension | Customer North = Region: North |
| Item card | Track sales/purchases of specific items | Item “Laptop” = Product Group: Hardware |
| G/L account | Default dimension for specific accounts | Marketing Expense = Department: Sales |
| Employee card | For payroll and expense allocations | Employee in HR = Department: HR |
Defaults reduce manual entry and enforce consistency.
Step 4: Enforce rules with Dimension Combinations
Not all dimension combinations make sense. For example, you may not want “Project X” combined with “Sales Department.”
-
Go to Dimension Combinations.
-
Define rules for valid/invalid dimension pairings.
| Dimension A | Dimension B | Rule |
|---|---|---|
| Department: Sales | Project: Internal Training | Blocked |
| Department: IT | Project: Customer Project | Allowed |
This prevents incorrect postings and ensures clean reporting.
Step 5: Analyze with dimensions
Using Analysis Views
-
Create Analysis Views to summarize transactions by dimensions (e.g., Sales by Department and Region).
-
Update regularly to keep data fresh.
Reporting options
-
Trial Balance by Dimensions → quickly compare balances.
-
Account Schedules → include dimensions as filters for financial reporting.
-
Power BI integration → extend analysis with visuals and dashboards.
Example: Tracking expenses by department
Let’s say your company wants to monitor travel expenses:
-
Dimension: Department (values: Sales, HR, IT).
-
Assign “Sales” as the default department on the Travel Expense G/L account.
-
When posting an expense report, the transaction is tagged automatically.
-
Run an Analysis View grouped by Department to see total travel spend by function.
Best practices
-
Choose dimensions wisely – Don’t overcomplicate. Start with 2–4 meaningful ones.
-
Use Global Dimensions for core reporting – These show up everywhere, so pick carefully.
-
Leverage defaults – Set dimensions on master data to reduce user entry errors.
-
Block invalid combinations – Keep data clean with Dimension Combinations.
-
Train users – Ensure they know how and when to apply dimensions.
-
Review regularly – Retire unused dimension values and check reporting needs.
Go-live checklist
-
At least 2 global dimensions chosen and set up
-
Shortcut dimensions configured as needed
-
Dimension values defined with clear codes and names
-
Defaults assigned to customers, vendors, G/L accounts
-
Rules for valid/invalid combinations defined
-
Analysis views tested and reports verified
Final thoughts
Dimensions are one of the most powerful features in Dynamics 365 Business Central. By tagging transactions with the right attributes, you unlock flexible, real-time insights—without bloating your Chart of Accounts.
When set up correctly, dimensions give you the agility to slice and dice financial data any way the business needs—whether by project, region, customer group, or department.