Cost Center / Dimension Basics

General rules

  • Set cost center/dimension mechanism in Company Setup.
  • Set default dimensions for relevant Items.
  • Assign documents (Journal Entries, Payments) to a particular dimension.
  • Submit Sales invoices using items assigned to dimensions.
  • Enter purchase invoices using items connected to a dimension.
  • Report a balance on a specific dimension; view all documents assigned to a dimension.
  • Profit and loss statements can be selected for the dimension, also, over several years if needed.

Supplier Invoice usage

  • For stock items, the costs for the dimension is first taken during delivery (direct invoice).
  • When you do your delivery (or direct invoice) the delivery will result in the stock being taken from inventory and placed on the costs account.
  • If the dimension is chosen when creating the delivery (or direct invoice) the costs is also placed on the dimension. This can be seen by looking at the gl transaction.
  • The sales part for the dimension is first taken when invoicing.

Non profits example

  • Let each of your funds be a Dimension 1.
  • If you need projects, they can be Dimension 2 of the fund (for instance a specific grant to track in your Temporarily Restricted fund)
  • Ignore the date fields, and if you ever need to close, merge, or otherwise use up a fund, dimensions can be closed without being deleted.