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Financial Dimensions

Distributor steps to set up and use Financial Dimensions in Encompass to tag GL accounts, purchases, journal entries and budgets for dimensional reporting. Needs Setting 3229 set to True. v25.01+.

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Written by Bailey Naas-Thornton

Minimum Version Required: 25.01

Pre-Conditions

Setting 3229: Enable Financial Dimensions is set to True

Steps

How to configure Financial Dimensions:

1. Once Setting 3229 is set to True, go to the Financial Dimensions table to start configuring your dimensions.

2. Locations are created as Dimensions by default; however, you can set them to Inactive if you do not want to use them.

3. Set your Dimension Type and Dimension Name

  • Dimension Code is an optional field for additional financial reporting options or 3rd party GL integrations

  • Note: Values for the Jobs and Class dimension types come from the Jobs and Classes table to enable backwards compatibility for customers that have used these legacy dimension types.

4. Assigning Financial Dimensions

  • If your Chart of Accounts is already structured by dimension, which is common in legacy ERPs, you can assign Financial Dimensions by GL account on the Accounts table.

  • Otherwise, you can keep your Chart of Accounts and start tagging them in transactions.

How to use Financial Dimensions:

1. Tag them in your Accounts-type purchases

2. Tag them in your manual journal entries

3. Include them in your imported journal entries

4. Tag them in your Budget, Bank Feeds, ApIQ and other add-on features and product lines.

Note: The Encompass ERP is powerful and rule-based dimension tagging automation is an option! Submit a Services Request in the Customer Pourtal if you are interested in consulting with an expert on how to implement Financial Dimensions or want to explore automation options.

Fields And Definitions

Dimension Type:A grouping of dimensions for easy aggregation and filtering
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Dimension Name: The name of the dimension

Dimension Code: Often an integer or short name for a dimension and most often used for 3rd-party GL integrations

Dimensional Accounting: A modern approach to achieving enhanced financial visiblity and reporting without Chart of Account bloat commonly found in legacy ERPs

Best Practices

Financial Dimensions are best used to derive enhanced value from an Income Statement or detailed general ledger reports.

  • While you can tag Balance Sheet accounts with dimensions, it is far less common and valuable to users of financial statements.

It is important to keep in mind the business decisions you are hoping to make with the additional visibility Financial Dimensions provides, before you implement them.

  • Encompass already provides robust reporting to see Gross Profit by Brand, Segment, Supplier, Location, etc. Leverage existing reporting as much as possible before adding Financial Dimensions.

  • Unless you implement automation, manually tagging every transaction with all 7 dimension types will increase the data entry burden on your team and risk data quality if tags are missed.

Always set Financial Dimensions to Inactive if you no longer want to use them. This protects historical data integrity and prevents accidental or intentional deletion of journal entries.

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