Your financial reports may need to show expenses by department, location, or project. How you capture that information affects the work required to produce those reports.
Account segments and dimensions provide different ways to organize financial information. Dynamics GP supports a segmented chart of accounts, with additional analysis available through Analytical Accounting.
Understanding the distinction can help your team improve reporting today and define requirements for a future ERP.
Key Takeaways
- Account segments place reporting categories within the account number.
- GP Analytical Accounting can capture additional information using transaction dimensions.
- Choose a structure based on reporting needs, data-entry requirements, and ongoing maintenance.
What Are Account Segments?
A segmented account number combines several pieces of information.
Consider this illustrative structure:
6100-020-003
| Segment | Example meaning |
|---|---|
| 6100 | Office supplies expense |
| 020 | Sales department |
| 003 | Nashville location |
The natural account identifies the type of financial activity. Additional segments distinguish business categories such as departments or locations.
This structure can be familiar and practical when reporting categories are stable. As the organization grows, however, the number of account combinations may increase.
Before adding another segment or creating more accounts, ask whether the proposed structure will remain manageable.
What Are Dimensions?
A dimension is a category used to classify information for analysis. A dimension value identifies the specific department, location, project, or other category associated with a transaction.
For example, a system using dimensions might capture:
- Account: Office supplies expense.
- Department: Sales.
- Location: Nashville.
The categories are captured separately from the natural account rather than all being embedded in one account number.
The available functions and entry process depend on the accounting system. Dimensions should not be assumed to work identically across GP, Business Central, and other applications.
How Does Analytical Accounting Work in GP?
GP’s Analytical Accounting functionality adds analysis information to eligible account distributions through transaction dimensions.
Accounts are linked to Analytical Accounting account classes, which determine the dimensions available during entry. Configuration can make dimension codes required, optional, or fixed, or prevent their use for particular account classes.
Analytical Accounting works alongside GP’s general ledger account structure. It does not automatically replace your existing account segments or simplify the chart of accounts.
Confirm availability, configuration, and reporting requirements with your GP partner before changing the setup.
Compare Segments and Analytical Accounting Dimensions
| Consideration | Account segments | Analytical Accounting dimensions |
|---|---|---|
| Where information is captured | Within the account number | As analysis information associated with eligible distributions |
| Adding reporting categories | May require additional account combinations | Requires dimension and account-class configuration |
| User experience | Users select the appropriate account combination | Users also provide applicable analysis information |
| Reporting design | Uses account and segment structure | Must incorporate the required Analytical Accounting information |
| Maintenance | Account combinations and segment definitions | Dimension codes, account classes, defaults, and validation |
Neither approach eliminates the need for consistent definitions and review.
Start With the Reports Your Leaders Need
Before changing the structure, collect examples of reports that are difficult to produce.
Ask finance and operational leaders:
- Which decisions should this report support?
- Which categories must be available?
- How much detail is useful?
- Who captures the information?
- Which values should be required?
- How will missing or incorrect coding be identified?
For example, reporting expenses by location requires consistent location information. Adding a dimension will not resolve inconsistent coding unless the entry and review processes also change.
If your team is working around other GP limitations, these underused Dynamics GP features provide additional topics for review.
Is Your Reporting Structure Creating Extra Work?
Bring examples of the reports your team builds manually and the information leaders need. LBMC Technology Solutions can discuss your current configuration through its Dynamics GP support services.
Include Imports and Integrations in the Design
Information captured during manual entry also needs to be considered when transactions arrive through imports or connected applications.
Document how account numbers and analysis values enter GP. Confirm that mappings, defaults, and validation preserve the detail your reports require.
For file-based processes, review importing journal entries with Integration Manager. Analytical Accounting information requires its own mapping and testing considerations.
For application connections, this overview of integration and custom software development can help frame requirements.
How Do Dimensions Work in Business Central?
Business Central uses dimensions and dimension values to classify entries for analysis. It supports default dimensions, rules for required values, and controls over dimension combinations.
Microsoft distinguishes global and shortcut dimensions used for convenient access and filtering. Those settings are not a limit on the total number of dimensions an organization can define.
If you are evaluating Microsoft Dynamics 365 Business Central, demonstrate your actual reporting scenarios during the selection process.
Do not assume that GP segments or Analytical Accounting dimensions will transfer directly into the new structure. Define and test the mapping.
Plan Reporting Changes Alongside Your ERP Decision
A reporting review can help whether you intend to remain on GP or move to another system.
Document:
- Current definitions: What each account segment and analysis code means.
- Required reports: Which reports must be preserved or improved.
- Historical access: How prior-period detail will remain available.
- Future structure: Which categories should remain, change, or be retired.
- Validation: How balances and reporting categories will be reconciled.
Use your Dynamics GP support and migration plan to decide which improvements justify work now and which belong in a future implementation.
Segments and Dimensions FAQs
Can GP use both account segments and dimensions?
Yes. Analytical Accounting adds analysis capabilities alongside the segmented general ledger structure. The appropriate setup depends on your requirements.
Will adding dimensions automatically reduce our account count?
No. Redesigning the chart of accounts is a separate project that requires planning for transactions, reports, integrations, and historical information.
Should every dimension be required?
Decide based on the information needed for each process and account. Requiring unnecessary values can create extra work, while leaving essential information optional can weaken reporting.
Are GP dimensions the same as Business Central dimensions?
They serve related analysis needs but differ in configuration, entry, and reporting. Review the requirements separately for each system.
Ready to Improve Your Financial Reporting Structure?
Tell us which reporting questions are difficult to answer and where your team relies on spreadsheets. We can discuss account structure, analysis requirements, and the next steps for your ERP.
