Cost accounting creates a single posting entry for each accounted dimension. For example, if a journal line in General ledger is posted with a cost center and a purpose dimension simultaneously, Cost accounting generates two separate posting entries: one posting line for the cost center, and another line for the purpose.

General ledger and Cost accounting are integrated in Microsoft Dynamics AX, but the transactions are independent from each other. This can lead to account balance inconsistencies during the reconciliation process.

Assigning dimensions supports the reconciliation of the income statement in General ledger with cost category accounting in Cost accounting. The dimension posting control determines how posting lines are managed in Cost accounting.

The dimension posting control setup is required only if a cost category is related to a cost center and purpose at the same time. In Cost accounting, no specific dimension posting control setup is needed if the assignment of a cost center or a purpose to a cost category is clear and unambiguous.

To generate multiple posting entries for a purpose, the dimension posting control in Cost accounting should not be set up.

It is possible to set up allocations per cost category; however, in most cases, setup on a general level should be sufficient. A more advanced allocation is necessary only in exceptional cases.

If it is possible to enter cost center and purpose for a certain cost category account, the objective might be to post the costs to either a cost center or a purpose. To achieve this, apply the following setup guidelines.

Cases

In an environment with two active dimensions in Cost accounting, the following four rules will cover all possible cases. Set up the posting rules in > > .

Case

Account code

Cost category dimensions

Dimension used

Apply transaction

1

All

Check boxes and are selected.

Check boxes and are selected.

Check box is selected.

2

All

Check boxes and are selected.

Check box is selected.

Check box is selected.

3

All

Check boxes and are selected.

Check box is selected.

Check box is selected.

4

All

Check boxes and are selected.

None of the check boxes is selected.

Check box is selected.

Examples

The following examples provide an overview of what happens when you work with the dimension posting control.

Settings for the cost category:

Cost category

Transaction control for dimension

Transaction control for dimension

Dimension posting control involved

40110 Sales Bulbs

Check box not selected.

Check box selected.

No

60020 Freight / Transportation In

Check box selected.

Check box not selected.

No

60670 Currency Adjustment Losses - Realized

Check box selected.

Check box selected.

Yes

Posted transactions according to the settings:

Account

Amount

Cost center

Purpose

Applied case

Posted dimension

Debit: 18130

Credit: 40110

$ 1000.00

Sales project

Bulbs

None

Purpose bulbs.

Debit: 60020

Credit: 18130

$ 100.00

Sales project

Bulbs

None

Cost center sales project.

Debit: 60670

Credit: 16315

$ 10.00

Sales project

Bulbs

1

Purpose bulbs.

Debit: 60670

Credit: 16315

$ 10.00

Sales project

Blank

2

Cost center sales project.

Debit: 60670

Credit: 16315

$ 10.00

Blank

Bulbs

3

Purpose bulbs.

Debit: 60670

Credit: 16315

$ 10.00

Blank

Blank

4

Empty transaction in cost center.

The rules do not apply for posting in lines 1 and 2 because no posting control has been set up for cost categories 40110 and 60020.

Results without any dimension control:

Without any specific dimension allocation, a posting entry is generated in the cost center and a second entry in the cost object level (purpose).

See the same example without the dimension posting control:

Account

Amount

Cost center

Purpose

Posted dimension

Debit: 18130

Credit: 40110

$ 1000.00

Sales project

Bulbs

Purpose bulbs.

Debit: 60020

Credit: 18130

$ 100.00

Sales project

Bulbs

Cost center sales project.

Debit: 60670

Credit: 16315

$ 10.00

Sales project

Bulbs

Cost center sales project and purpose bulbs.

Debit: 60670

Credit: 16315

$ 10.00

Sales project

Blank

Cost center sales project and an empty transaction in purpose.

Debit: 60670

Credit: 16315

$ 10.00

Blank

Bulbs

An empty transaction in cost center and a transaction to purpose bulbs.

Debit: 60670

Credit: 16315

$ 10.00

Blank

Blank

Empty transactions in cost center and purpose level.

See Also