Dimensions in Dynamics 365 Business Central - A complete, practical guide for design, usage, and control
- Abhisar Sharma
- Jan 14
- 11 min read
Dimensions are the foundation of meaningful reporting in Business Central. They determine whether your ERP only records transactions, or whether it actually helps you understand how your business is performing.
When dimensions are designed well, reporting becomes flexible, consistent, and reliable. When they are designed poorly, even simple questions like “Which department made a loss last month” become difficult to answer.
This guide explains dimensions end to end, using simple language, real logic, and practical Business Central behavior.
What dimensions really are
We spent 5,000.
On its own, that number has very little meaning.
Now imagine the same entry with context:
• We spent 5,000 on Marketing
• In Store 03
• For Brand A
• Through the Online channel
The amount did not change. The meaning did.
That additional meaning is what dimensions provide.
Dimensions are not just tags or labels. They are structured business context attached to financial and operational transactions. They explain where, why, for whom, and for what purpose a transaction exists.
Because of dimensions, the same transaction can answer multiple business questions without creating more GL accounts, more reports, or more complexity.
In simple terms: Dimensions turn numbers into information.
Dimensions vs Accounts
Accounts answer one primary question: What type of transaction is this?
For example:
• Sales revenue
• Rent expense
• Inventory
• Cost of goods sold
Dimensions answer a different set of questions:
Where did it happen? Who was involved? Why did it happen? Which part of the business does it belong to?
For example:
• Department
• Location
• Customer group
• Product category
• Project
• Salesperson
• Region
Accounts describe the nature of the transaction. Dimensions describe the business context around it.
Together, they allow one transaction to be both correctly classified and meaningfully analyzed.
Why Dimensions Exist
Most businesses need to analyze performance from many different perspectives, such as:
• Profit and loss by department
• Sales by region and sales channel
• Expenses by cost center
• Margin by brand
• Inventory value by category and warehouse
• Performance by project
If you try to support all of this using only the chart of accounts, the chart quickly becomes too large, too detailed, and difficult to maintain. Every new reporting need turns into another account, and soon the structure becomes confusing rather than helpful.
Dimensions solve this problem.
They allow you to keep your chart of accounts clean and stable, while still giving you the flexibility to analyze the same transactions from unlimited business angles.
In simple terms, dimensions protect your chart of accounts from becoming a reporting mess.
Global dimensions, Shortcut dimensions, explained simply
Global Dimensions
Business Central allows you to create many dimensions. However, two of them are treated differently in the system:
• Global Dimension 1
• Global Dimension 2
These two are not special because of how dimensions work. They are special because of where they appear.
Global dimensions are:
• Stored directly on many Business Central tables.
• Shown by default on many pages.
• Used automatically in many standard reports.
From a reporting and accounting perspective, global dimensions behave exactly the same as any other dimension. The difference is not in logic, but in visibility and convenience.
Shortcut Dimensions
Shortcut dimensions are simply additional dimensions that Business Central displays as quick entry fields on pages such as journals and documents. They exist to make data entry easier.
Business Central does not enforce a strict technical limit on shortcut dimensions.
However, Microsoft and most partners recommend keeping the total number of dimensions practical. In many real implementations, this usually means around six to eight dimensions.
Some organizations do use more, but only when they have strong governance, clear naming, and proper user training.
As the number of dimensions increases, the risk of inconsistent or incorrect data entry also increases.
So the real limitation is not technical.
It is usability.
Dimension sets, explained in very simple language
When you assign dimensions to a transaction, Business Central does not store each dimension separately on the entry. Instead, it stores a single reference called a Dimension Set ID.
You can think of it as a bundle.
Instead of saving this on every entry:
Department = Sales
Store = Store01
Channel = Online
Business Central groups these values together into one combination and assigns it an ID number. That ID represents the entire set of dimensions.
If another transaction uses the same combination, Business Central simply reuses the same ID instead of storing the values again.
This design keeps the database smaller, faster, and more consistent.
So when you see a Dimension Set ID, remember: It is not a code you need to understand. It is simply a pointer to a group of dimension values.
Where dimensions are used
Dimensions are not only for GL.
They can be used across:
• Sales documents
• Purchase documents
• General journals
• Payment journals
• Fixed asset journals
• Item journals
• Locations and Resources
• Transfer and warehouse postings
• Jobs and service postings
• Reports and analysis tools
A simple rule: If a transaction can post and create ledger entries, dimensions can usually be attached to it.
Setting up dimensions the right way
Step 1: Create Dimensions
Start by defining your core business dimensions on the Dimensions page. Typical examples include:
• DEPT
• COSTCENTER
• STORE
• REGION
• CHANNEL
• BRAND
• CATEGORY
• PROJECT
Resist the temptation to create too many. Every dimension must be meaningful in daily transactions. If users struggle to choose values, the dimension is probably not needed.
Dimensions should simplify reporting, not complicate posting.
Step 2: Create Dimension Values
Each dimension can have many values. For example, for DEPT:
• SALES
• FIN
• OPS
• WH
• MKT
There is no technical limit to how many values you can create. But from a reporting and usability perspective, fewer, well-structured values are always better than many inconsistent ones.
When creating values, think ahead about reporting needs:
• Will you want totals for all stores in a region.
• Will you want totals for all online channels.
• Will you want totals for multiple cost centers.
This is where dimension value types and hierarchies become important. They allow values to roll up cleanly without creating extra dimensions or accounts.
Dimension value types and hierarchy
Dimension values in Business Central can be structured, just like a chart of accounts. You are not limited to a flat list.
You can define dimension values as:
• Standard
• Total
• Begin Total
• End Total
This structure allows you to group multiple values into meaningful totals for reporting.
Simple example: Store dimension with regions. Suppose you want to group several stores under a West region.
You could define:
• WEST as Begin Total
• STORE01 as Standard
• STORE02 as Standard
• STORE03 as Standard
• WESTTOTAL as End Total
Now, reports can show totals for the West region without creating a separate region dimension.
Blocking dimension values
If a dimension value is blocked, users should not be able to post to it.
Blocking is useful when:
• A department closed.
• A store shut down.
• A cost center was merged.
Blocking preserves history but prevents future use.
Choosing Global dimensions, Shortcut dimensions, and what happens if you change them later
Global Dimensions
Global dimensions are defined in:
General Ledger Setup → Change → Global Dimensions
Your two global dimensions should represent the dimensions you use most frequently in reporting.
Not what is popular. Not what another company used. But what your business relies on every day.
Because global dimensions are stored directly on many tables and are used by many standard reports, they become deeply embedded in your data model.
Best practice:
• Decide global dimensions early.
• Test key reports using them.
• Validate with finance and management before go live.
Choosing the wrong global dimensions creates long term reporting pain.
Shortcut Dimensions
Shortcut dimensions are also configured in General Ledger Setup. They simply control which dimensions appear as quick entry fields on pages such as journals and documents.
Shortcut dimensions affect usability. Global dimensions affect structure.
Changing Global Dimensions Later
This is where many implementations run into trouble.
Changing which dimension is assigned to Global Dimension 1 or 2 is not just a label change. It affects how existing data is stored and how reports interpret historical entries.
In a live environment, global dimension changes must be treated as a controlled project:
• Confirm the new global dimension choices.
• Decide how historical reporting will be handled.
• Validate all key reports before and after the change.
• Communicate clearly with users.
If you are early in an implementation, changes are manageable. If the system is already live for months or years, extreme care is required.
Default dimensions, the real engine of good dimension design
Default dimensions are what make dimensions practical in real life. Without them, dimensions rely entirely on manual entry, which leads to inconsistency and user frustration.
Default dimensions allow Business Central to automatically suggest dimension values based on master data, so users do not have to select them every time.
You can define default dimensions on:
• G L accounts
• Customers
• Vendors
• Items
• Bank accounts
• Fixed assets
• Jobs
• Employees
Where to maintain them
For example, on a GL account:
G L Account Card → Account → Dimensions → Default Dimensions
The same approach applies to all other master records. You can also use Configuration Packages to maintain default dimensions in bulk.
The real objective
The objective is simple:
When a user creates a document, Business Central should already know most of the dimension values.
The more the system fills automatically, the more consistent your reporting becomes and the easier posting becomes for users.
Good dimension design is not about asking users to choose correctly. It is about making the system choose correctly for them.
Value posting types, explained properly
Value posting types are defined on the Default Dimensions page.
They control how strictly a dimension is enforced. Here are the key posting type values:
Blank
This means no default value, and no restriction.
Same Code
The user must post with the exact value defined. If they change it, posting fails.
Example: Customer A must always post to REGION = WEST
Code Mandatory
The user must select a value, but can choose any valid value. Example: Every expense entry must have a DEPT, but the department can vary.
This is the most commonly used and most practical option.
No Code
This dimension is not allowed for that record. The user cannot select any value.
Allowed Values Filter
This allows you to restrict which values are allowed for that record.
For example, a customer may only allow certain regions or departments to be used with that master record.
How Business Central Determines Which Dimensions Are Used and Posted
Where dimensions come from on a document
When you select a customer or vendor on a sales or purchase document, Business Central immediately pulls that business partner’s default dimensions onto the document header. From that point onward, when you create lines on the document, those header dimensions are used as the starting dimensions for the lines.
Next, when you select an item on a line, Business Central may also propose default dimensions from the item. But it does not blindly replace what is already on the line. If a dimension value is already present on the line, the item’s default dimension for that same dimension will only take over if the user changes it manually or if Default Dimension Priority is set up so that the item source should win over the customer or vendor source.
Because of this, the final dimensions you see on a line depend on two things: the order you enter values and your Default Dimension Priority setup. In most standard setups, customer or vendor dimensions get applied first and stay in place unless you intentionally override them.
In simple terms, Business Central does not constantly recalculate dimensions. It applies defaults at the moment you choose customer and add lines, and after that it keeps the line values unless a priority rule or a user change replaces them.
How Business Central decides which dimensions are posted
Business Central does not post one single dimension set for the entire document. It posts dimensions based on where each accounting entry originates.
Entries that come from the customer or vendor side, such as Customer Ledger Entries, Vendor Ledger Entries, and their related control account GL entries, use the document header dimensions.
Entries that come from document lines, such as sales revenue, purchase expense, COGS, inventory, and item ledger related postings, use the line dimensions.
This is why the same document can create GL entries with different dimension values. It is not a bug. It is how Business Central separates business partner reporting from operational and item level reporting.
Default Dimension Priority only controls how dimensions are suggested during data entry. Posting simply follows whatever dimension set already exists on the header or on the line.
Copying documents
Copy Document is a huge source of dimension surprises.
When you copy a document:
• Header and line dimensions can come over exactly as they were.
• That might be correct if you are duplicating a similar transaction.
• That might be wrong if the new document is for a different department, store, or project.
Dimension combinations
Dimension Combinations control whether two dimensions are allowed to exist together on the same transaction. They do not control which dimension values are selected or how dimensions flow. They only control whether a specific pair of dimensions is valid.
Each dimension pair can be set to one of three options:
No limitation means the two dimensions can always be used together with any values.
Blocked means the two dimensions can never be used together on the same entry. Business Central will stop the user from posting if both dimensions appear on the transaction.
Limited means the two dimensions are allowed together, but only for certain value combinations. When you choose Limited, you must define the allowed or blocked value pairs on the Dimension Value Combinations page. Without value-level rules, the system has nothing to validate.
Dimension Combinations therefore work in two layers. The first layer decides whether
two dimensions can coexist. The second layer, used only when Limited is selected, decides which specific value pairs are allowed.
Most importantly, Dimension Combinations do not influence dimension priority, defaulting, or posting logic. They only validate whether the final dimension structure entered by the user is acceptable according to your reporting and governance rules.
In simple terms, Dimension Combinations do not choose dimensions. They only police the structure.
Reporting with dimensions
Dimensions are the foundation of reporting in Business Central. They allow the same financial transactions to be analyzed from multiple business perspectives without changing the chart of accounts.
Dimensions drive:
• Trial Balance by Dimension
• Financial Reports (Account Schedules)
• Analysis Views
• Filters across all ledgers and reports
• Power BI and Excel reporting integrations
Because dimensions are stored with every entry, you can slice the same numbers by department, project, region, customer group, or any other business structure you define.
In simple terms, dimensions turn accounting data into business insight.
Editing dimensions after posting
In Business Central, posted dimensions cannot be edited directly. This is intentional, to protect audit and transaction integrity.
If a dimension is wrong, it must be corrected using controlled accounting methods:
• Correct Dimensions - Changes dimensions on posted GL entries by creating adjustment entries, without changing the original amounts.
• General Journal reclassification entries - Manually reverse the amount from the wrong dimension and repost it to the correct one at the GL level.
• Reversal and reposting - Used when the original transaction itself is incorrect.
• Credit memo and reissue - Used for sales and purchase documents that must be corrected legally.
These correction methods apply only to GL reporting. Dimensions on subledger entries such as customers, vendors, and items cannot be changed, because subledgers represent transactional history. Business Central allows reporting to be corrected, not the original transaction.
The original entry is never changed. Business Central always preserves history and fixes dimensions only through new correcting entries.
Governance and usability
Dimensions do not fail because of technology. They fail because of design and discipline.
Dimensions struggle when:
• Too many dimensions exist without purpose.
• Default values are missing or inconsistent.
• Rules feel arbitrary or confusing.
• Users are not trained to use them correctly.
Dimensions succeed when:
• Defaults handle most data entry.
• Mandatory rules are simple and predictable.
• Dimension values follow clean naming and structure.
• Governance defines who can create, change, and approve values.
Well governed dimensions reduce manual work, improve reporting accuracy, and increase user confidence.
Poorly governed dimensions create noise, frustration, and unreliable reporting.
Final Thought
Dimensions are not just a configuration step. They are a business design decision.
They define how your organization measures performance, accountability, and success.
They influence every report, every analysis, and every management discussion that follows.
When dimensions are designed well, Business Central becomes a true management and decision-support system. Leaders gain visibility, teams gain clarity, and reporting becomes trusted.
When dimensions are designed poorly, Business Central becomes only a data entry system. Reports lose credibility, users lose confidence, and decision making becomes slower and more subjective.
The difference is not in the software. It is in the design, governance, and discipline behind the dimensions.
Done right, dimensions do not just organize data.
They organize the business.
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