Let’s say you work for a company that has a few sites. The company uses MS Dynamics 365 for Finance and Operations (aka D365FO). The chief financial officer of the company has a requirement to collect costs of goods sold (aka COGS) and revenues by sites of the company. It is needed to report margin individually for each site. You are in charge of resolving this request. In this blog post I will show you how the requirement can be met.
This post is also applicable to MS Dynamics AX 2012 (aka AX 2012, or DAX 2012).
To organize revenues and expenses collection by sites, the appropriate financial dimension must be set in the system. The values of this dimension must represent the sites of the company. It must be possible to link the financial dimension values to the sites.
For example, if the company has three sites, then at least three values have to be available to link them to the appropriate sites. If the financial dimension is not yet available in the system then you need to set it up. The financial dimension must be linked to the proper ledger accounts where COGS and revenues are collected.
What you need now is to specify a proper financial dimension value for each site.
When it is done, the system works this way: when the site is set in the document, like sales order, or inventory movement, or whatever, the system updates the financial value in accordance to the site chosen.
For instance, the sites are linked to financial dimension “Business unit”, and the site “1” is linked to the business unit “002”. When site “1” is set for sales order, the system updates the financial dimension “Business unit” in the document and sets the value “002” there.
To set this link up, you need “Dimension link” functionality.
Select the dimension to be linked to the site. After that click the “Sites” button to set the dimension values for the sites. Specify a dimension value for every site available for the legal entity.
Go back to the “Dimension link” page and click the “Activate link” button. The system shows the “Link dimension update” form and the message “The dimension on all open transactions will be updated to match the site dimension”.
This message means that the system will update records in order to set financial dimension in accordance with the site. Let me explain what it means.
Let’s say you have a movement journal which is not posted. The system, by doing the link dimension update procedure, will set financial dimension in accordance with the site chosen in the journal line.
One more option is available regarding this functionality. Probably you noticed that the page “Dimension link” has the “Lock link” button. This button changes the state of the link from “Active” to “Locked”. “Active” state means that the system sets the dimension value in accordance with the site but a user is allowed to change that value. “Locked” state doesn’t allow to the user to change the dimension value that was set by the system.
That is all about this option. Try it yourself. It won’t take much effort to set it up. But this option is helpful when a collection of financial information is needed by sites.
The list of methods the system runs while updating dimensions by “Link dimension update” functionality: