Comparing Dynamics GP to Business Central – The power of Dimensions

The advantages of Dimensions in Business Central over segmented accounts in GP

To compare how the GL is used in GP vs. Business Central, we need to look at Account Framework in GP and Account Structure and Dimensions in BC. So, let’s get right down to it.

The best way for me to explain the differences is to list how the limitations of segmented account setup in GP are not limitations in GL Accounts and Dimensions in BC.

How do Dimensions replace multi-segmented accounts?

Dimensions are data tags that replace the account segments in G/L Accounts. Where a cost of goods sold account with segments is entered in one field in a journal entry in GP, a GL Account and Dimensions are entered into 5 fields in BC. This applies to documents and journal entries.

Defaulting Dimensions

Default Dimension and Dimension Values can be assigned to Customers, Vendors, Items, Chart of Accounts, Resources, Fixed Assets, Locations, Responsibility Centers and Salesperson/Purchaser codes.

1. Default as many values as you can from Master Data to transactions.
2. Values can be modified on transactions, but setup should limit user decisions at data entry.
3. If and what dimensions are required to post a transaction can be defined anywhere Dimensions can be assigned.
4. Dimension priorities determine what master data “wins” if more than one used on a transaction have a default dimension assigned.

Correcting Dimensions on GL Entries

If errors are made recording Dimensions on a transaction, Dimensions on the resulting GL Entries can be corrected. This can eliminate time consuming document reversals or reclassification entries. Here are a  few other benefits and some limitations to this functionality:

1. Change, add or remove dimensions from G/L entries only
2. Fixes data for financial reporting but does not change data on the source document
3. Permissions determine user access to this functionality, not all users will have access
4. Changes are logged
5. Changes can be reverted to original value

I hope you find this different approach to explaining segmented Chart of Accounts in GP to Chart of Accounts with Dimensions in BC helpful.

For a UST Education ¹ webinar presented in early 2023 by me and Telka Clem of Western Computer go to https://media.usteducation.org/w377-microsoft-dynamics-gp-vs-d365-business-central-from-a-unique-finance-perspective/

1. In 2020, US Transactions Corporation launched UST Education. Growing out of the success of Presidential Forum, UST’s community driven roundtable discussions, UST Education provides high quality continuing education to the business communities in which UST is engaged. Our team ensures proactive support, ease of registration, and fast credentialing for our interactive webinars, and our expert instructors address topics relevant to the professionals we serve.
   ↩︎