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Dimensions (SAP Business One)

Structural attribute that provides a specific view of the cost and effort analysis.

Dimensions in SAP Business One are a powerful tool that enables multidimensional analysis of expenses and revenues. Instead of analysing the costs of just one Cost centre different attributes can be taken into account simultaneously, e.g:

  • Product line
  • Project
  • Region
  • Distribution channel
  • Customer group

This flexibility provides a detailed and transparent view of a company's cost structure.

Setting up dimensions

SAP Business One provides five dimensions as standard, which can be individually configured and named. Multidimensional cost accounting is activated under General settings > cost accounting.

Use of dimensions

After activation, dimensions can be used in various areas:

  • chart of accounts: A standard cost centre can be assigned to each G/L account per dimension.
  • Vouchers: When entering documents such as sales documents or journal entries, the relevant dimensions can be selected.
  • Reports: Cost accounting reports can be filtered by dimension to perform specific analyses.

Advantages of dimensions

  • More precise cost analysis: Dimensions enable the exact allocation of costs and revenues to the respective areas of responsibility.
  • Sound decision making: The detailed insights into the cost structure support targeted corporate management.
  • Transparency and traceability: Dimensions create clarity in cost development and facilitate comprehensible analyses.

Practical example

A company wants to analyse marketing costs by product line and region. To do this, the dimensions "Product line" and "Region" set up. When booking marketing expenses, these dimensions are selected accordingly. The cost accounting reports in SAP Business One then enable an analysis that takes both dimensions into account - e.g. to evaluate the distribution of costs by product line within a specific region

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Categories:

FinanceSAP Business One

Tags:

AccountingAccounting,  Financial Buc