Dimensions have the following characteristics:
• Provide a more detailed description of a transaction.
• Simplify the accounting process when you enable detailed analysis without the creation of a detailed Chart of Accounts.
• Resemble separate accounts for:o Departmentso Cost centerso Purposes
• Are defined to analyze and classify financial transactions as follows:
Financial transactions usually are organized according to voucher and account number. Additional grouping and classification options are available when you assign several dimensions to transactions.
• Enable you to view the data file from different perspectives to improve the effectiveness in tracking figures across accounts.
• Can be used throughout the system.
• Add dimensions to base data such as: Ledger accountso Customerso Vendors
• Are copied to transactions automatically. You can have max 10 dimensions in AX ( 3 are default). I'll take a simple example. Lets say you have a ledger account 100100 as Telephone Expenses and you have 2 departments (Sales & Purchase). You want to see all expense department wise. One way would be to have 2 Ledger Account Codes as 100100-1 as Telephone Expenses - Sales & 100100-2 as telephone Expenses - Purchase . However this would be inconvenient with larger departments and larger analysis criteria. Hence using dimensions (Sales & Purchase) and posting to same account 100100 will help you get expenses department wise. Help you keep a managable CoA.