Legal Entity as a Dimension

schoolkid

Team

We have 4 legal entities (companies) that needs to be setup in Navision. Is it possible to set them up as dimensions? the reason for this is we have consolidated Item master which is common for all companies. We also require seperate VAT reporting for each company.

Thanks in advance for your suggestions!

matttrax

Not being a finance person, that sounds like it would be ok. We have done something similar at my company, but I don't know what goes on in the finance world in regards to them reporting off of it, filing taxes, etc.

schoolkid

Thanks matttrax for your reply!!

Any more suggestions?

rdebath

We have 4 legal entities (companies) that needs to be setup in Navision. Is it possible to set them up as dimensions?

It is possible but there are issues.

First thing is you almost certainly want to make sure that the General ledger is balanced with respect to this dimension. If you don't it becomes likely that when you look at just the G/L entries for one company you will have many what look like "single sided entries". You can either throw a CONSISTENT error when a transaction is unbalanced or automatically add extra G/L entries to make it balance via intercompany accounts.

The VAT reporting routines will have to be changed and you may need to copy the dimension onto the vat ledger entries for this.

The year end journal will likely have to be made 'balanced by dimension' too.

Other than this the requirements are mostly in the setup to make sure every transaction has the "Company dimension" attached. Mostly that's easy enough, however, I seem to remember cash matching is a pain.

schoolkid

Thanks rdebath for your suggestion!

Now I understand the difficulties in using Dimension as a company.

Thanks!!