Dear Readers,
If you know tally or any other accounting software, you must be aware of the concept of cost centers in it. Lets one by one try to understand the concepts
What is Cost Center?
Cost center is the part of a unit like departments, branches,etc considered as unit so that cost related to it can be calculated for the company's accounts. When we create an entry, we want to attach the cost center ie which department is responsible/ which branch is responsible for this expense. The cost centers and profit centers are the same thing but the profit centers generates revenue and cost centers dont generate revenue.
What is Dimension in NAV?
The cost centers are Dimensions in NAV. We can create new dimensions and can be used while creating any entry.
How to create Dimensions?
You can create dimension with following steps:
1. Create dimensions in financial setup
Here you would find two fields,
1. Code: Specify the code of the dimension; like for department you can specify (DPT), branch (BRANCH) and so on
2. Description: Specify description of the dimension. The full name of dimension code for example for DPT: Department would be description.
2. Create dimension values ie all the values of the dimension created in the dimension table
Go to dimension values in the ribbon. You would see another table which would have following fields:
Code: Now you would give the values of dimension code here. Like for department dimension, you would give values like Finance, IT, Marketing,etc. for those you would give a code with at most 10 characters. Like for marketing you give MKT as code of dimension value. You can also use some numerical logic while giving the codes of dimension value.
Description: Since you would give a small code of the dimension value in code, you would give the full name of dimension in description.
Type: Standard, Begin total and End Total : This is an important part to understand. You can create values in groups. Like for example you want to create dimensions of areas. You can do like this as we have stated in below image
Begin total would be used to start a group
End total would be used to stop a group
Standard would be the value in which the entry would be posted
What are global dimensions and Shortcut dimensions?
A global dimension is a dimension which you can filter anywhere in the form of NAV. You can set up two dimension as global dimensions. The global dimension can be fixed in general ledger setup page.
The global dimension can be changed by clicking "Change global dimension" over the ribbon of thye general ledger setup page.
What are Short Cut Dimensions?
In vouchers or in sales or purchase documents. You would find difficult while attaching dimension. After creating an entry you would have to click on a button "dimension", another page will open on which you can give dimensions for that entry. but if you give short cut dimensions in general ledger setup, you would find these dimensions in the column of your entry itself, you dont need to go to the another window to give these dimensions. You can fix 8 dimensions as short cut dimensions.
1. Fixing short cut dimensions:
in general ledger setup page, you would find the tab of Dimensions as shown below, two are global, you can give another 6 dimensions directly here:
2. Using dimensions in vouchers:
You can choose the dimensions in the columns of your voucher by right clicking "choose columns" in the header. after your selection you can find the dimensions directly on your vouchers :
same as voucher, you can find these shortcut dimensions on the sales and purchase documents.
If you know tally or any other accounting software, you must be aware of the concept of cost centers in it. Lets one by one try to understand the concepts
What is Cost Center?
Cost center is the part of a unit like departments, branches,etc considered as unit so that cost related to it can be calculated for the company's accounts. When we create an entry, we want to attach the cost center ie which department is responsible/ which branch is responsible for this expense. The cost centers and profit centers are the same thing but the profit centers generates revenue and cost centers dont generate revenue.
What is Dimension in NAV?
The cost centers are Dimensions in NAV. We can create new dimensions and can be used while creating any entry.
How to create Dimensions?
You can create dimension with following steps:
1. Create dimensions in financial setup
Here you would find two fields,
1. Code: Specify the code of the dimension; like for department you can specify (DPT), branch (BRANCH) and so on
2. Description: Specify description of the dimension. The full name of dimension code for example for DPT: Department would be description.
2. Create dimension values ie all the values of the dimension created in the dimension table
Go to dimension values in the ribbon. You would see another table which would have following fields:Code: Now you would give the values of dimension code here. Like for department dimension, you would give values like Finance, IT, Marketing,etc. for those you would give a code with at most 10 characters. Like for marketing you give MKT as code of dimension value. You can also use some numerical logic while giving the codes of dimension value.
Description: Since you would give a small code of the dimension value in code, you would give the full name of dimension in description.
Type: Standard, Begin total and End Total : This is an important part to understand. You can create values in groups. Like for example you want to create dimensions of areas. You can do like this as we have stated in below image
Begin total would be used to start a group
End total would be used to stop a group
Standard would be the value in which the entry would be posted
What are global dimensions and Shortcut dimensions?
A global dimension is a dimension which you can filter anywhere in the form of NAV. You can set up two dimension as global dimensions. The global dimension can be fixed in general ledger setup page.The global dimension can be changed by clicking "Change global dimension" over the ribbon of thye general ledger setup page.
What are Short Cut Dimensions?
In vouchers or in sales or purchase documents. You would find difficult while attaching dimension. After creating an entry you would have to click on a button "dimension", another page will open on which you can give dimensions for that entry. but if you give short cut dimensions in general ledger setup, you would find these dimensions in the column of your entry itself, you dont need to go to the another window to give these dimensions. You can fix 8 dimensions as short cut dimensions.
1. Fixing short cut dimensions:
in general ledger setup page, you would find the tab of Dimensions as shown below, two are global, you can give another 6 dimensions directly here:
2. Using dimensions in vouchers:
You can choose the dimensions in the columns of your voucher by right clicking "choose columns" in the header. after your selection you can find the dimensions directly on your vouchers :
same as voucher, you can find these shortcut dimensions on the sales and purchase documents.
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