Dynamics 365 Finance: Department Dimensions for Balance Sheet and Profit & Loss Accounts

Department Dimensions for Profit & Loss Accounts

Question

A company is moving financial workloads to Dynamics 365 Finance.

Balance sheet accounts do not require department dimension postings while profit and loss accounts require department dimensions.

You need to determine which functionality achieves the goal.

What should you recommend?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

C.

https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/configure-account-structures

To achieve the goal of moving financial workloads to Dynamics 365 Finance, while ensuring that balance sheet accounts do not require department dimension postings, and profit and loss accounts require department dimensions, you should recommend using financial dimensions.

Financial dimensions are used to categorize financial transactions in Dynamics 365 Finance, and they allow for greater flexibility and analysis of financial data. By defining financial dimensions, you can capture additional information about transactions that can be used for reporting, analysis, and tracking.

In this scenario, you can define a financial dimension for department, and then assign the department dimension to profit and loss accounts only. This ensures that when transactions are posted to profit and loss accounts, the department dimension is required, but when transactions are posted to balance sheet accounts, the department dimension is not required.

Financial dimension sets and account structures are not appropriate solutions for this scenario. Financial dimension sets allow you to group and manage financial dimensions, but they do not provide the required functionality for this scenario. Account structures are used to define the chart of accounts and are not used to manage financial dimensions.

Legal entities are also not a solution to this scenario. Legal entities are used to define separate legal entities within an organization, and they are not used to manage financial dimensions.

Therefore, the recommended solution for this scenario is to use financial dimensions.