Cost accounting series: Cost element dimensions setup.

Hello D.M.-azing D365 Community!

As part of our Cost accounting series, we will now dive in and further discuss each Cost accounting dimension and we will start with unboxing Cost element dimension.

From our previous blog, we have established the idea that Cost element dimensions are the cost-relevant items in the Chart of accounts. This element should be at the lowest level where the costs can flow in a business.

And to setup Cost element dimension, please follow the below steps:

1. Navigate Cost accounting > Dimensions > Cost element dimensions.

2. Click New button then a setup form will be available.

3. Enter any value under Name and Description fields. On Data provider field, select the option where the Cost elements value will come from.

The selections are either: (1) Dynamics 365 for Finance and Operations – Main accounts, (2) Dynamics AX – Main accounts, or (3) Imported dimension members. Then click Save to enable the greyed out fields.

Note: Since we are working in D365, we selected Dynamics 365 for Finance and Operations – Main accounts as data provider.

4. Click Configure data provider, then a form will be available to select Chart of accounts (COA) to be used. In this case, we select ‘Shared’ which in this environment is the COA linked in the ledger form which in turn can give us values or records that is helpful for internal reporting.

5. Once COA has been selected, click on New button under Main account rules to enter either Main account type or From and To Main account. For this let us select from and to main account for Profit and loss, this is in case if not all main accounts are properly tagged with Main account type. Then click Ok.

6. Click Import dimension members and click Ok.

7. Once done, click View dimension members and your selected Main account rules should display.

And that is how we configure Cost element dimensions in D365 FO.

That’s it for now. I hope that you find this article as a helpful tool for you to better appreciate and understand, everything and anything, about Microsoft Dynamics 365 for Finance and Operations.

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