MB-310 Microsoft Dynamics 365 – Financial Dimensions and Account structures

  1. Account Structures

In this video you will learn about account structures. To be able to explain you about account structures, let me directly jump into the application and let us start with the question that we parked aside in the previous video. So what was the question? Let me go to the general journals. So the question was when we create a journal and get into the lines and select an account here, like travel expense. So the moment that I select an account here, I am seeing the dimensions here, I am seeing these four dimensions. And we discussed in the last lecture that it is not that every organization will need the same financial dimensions, right? Every client will have their own requirement. So only in the contours of demo data we are seeing these dimensions. But the dimensions that are required for, required by different clients may be different, right? So it is important that we know from where the system will get these financial dimensions correct.

Now let us see how are we getting these financial dimensions here, okay? And at the same time, when I select a different account here, for example, we were taking this pedicache account, right? I typed petty cash account and I selected this account here. At this time you are seeing only two dimensions. So what is the story about this one? Right? So one account we are seeing four dimensions and the other one we are seeing only two dimensions. So firstly, where these dimensions are coming from and why different dimensions based on the account that we select. Okay, so let me go to account structures. To understand where these are coming from, I will need to take you to the ledger form under general ledger. I have the ledger form right here under ledger setup. So I mentioned that this is a very critical form for you where you have the core setups for the company available here.

Okay? And we talked about these different fields here and this is something that we are going to discuss about now. Account structures. So in the ledger form we are going to create or we are going to add some structures. So what is this structure? So let me just open up this structure here. If I click this automatically, system will take me to the form where the structure is configured, right? So this is my structure. So if in case you want to go to this particular form from the front end directly, what do you do? You go to the otherwise you can simply search for, I’m sorry, you can simply search for configure accounts structure.

Okay. Then you will see this configure accounts structures form. So when you open this one, you will see all the structures that are available in the demo data. Okay, but if we did a fresh implementation, obviously you will see nothing here, right? And we need to create our own structure. Okay. So this is how you open the account structure. And you can search for the one that you want. So for now, let’s go to this one here, because this is the one that is connected to our US MF company, right? Because we went to the ledger form and then we found this account structure. So we have three different structures here. Firstly, let’s focus on the first structure. So what is it saying here? So here it is defined in such a way that for all the accounts which are starting from 10 triple zero to three double line, triple line. So for all these accounts, system should show only these two dimensions.

So that is how it is configured. Okay. And that is the reason when I select an account that is falling within this particular range, then I will see only these two dimensions. Okay. Now let us go back to the journal to verify what we understood is correct, right? I am going back to the journal Voucher and then I am taking an account that is starting with, let us say three double line or else that starts with three, right? I’m taking this account and you see here, I am having only two segments here. So business unit and the other one is department. That’s it, right? So that is what is configured in our account structure. Okay, now let us go back to our ledger form and what is the next structure that is linked to this particular ledger. So that is Pndl structure. So if you go to this particular structure and forget about these values here, we are going to talk about them a little later.

And if you look at only these financial dimensions that are available here, you see that this structure has four dimensions, right? And let us go and check this. You see here all the accounts that are starting from four double zero, triple zero to this one. You should see these four dimensions. So that is how it is configured. Now let me go back here and I will change this account and I will take any of the expense accounts. So I’ll take this purchase expense. Okay. And you see here, I’m seeing four segments here. These are called segments and four segments and four dimensions. Okay. So the same dimensions that we have in the structure are being shown in the segments. Okay. So that is how the dimensions will get populated based on the accounting structure.

Fine. Now let us understand this a little bit more. So what if we want to create a new accounting structure, right? So let us go to the account structure and I will also discuss about why do you need to have multiple structures, right? Why business really need multiple structures in the business scenarios, right? I will go to the configure account structures form. If you would like to navigate to that particular form through this one, go to the general ledger module and then you will find chart of accounts dimensions and then you have the structures here. Okay? So you open up this configure account structures, right? So this is how you go to that particular form. Then you create your own structure here. Now, I am taking a business case here where our newly created company SGPC needs a new structure, right? So let us configure a new structure called SGPC.

So I want to represent my company name in the structure name. So that is the reason I’m using SGPC keyword here and I say balance sheet. Okay? So I’m creating a new structure and by default I want the main account to be added as the dimension. So I have the main account and I would like to add the newly created department, right? So if you remember in the previous videos I’ve shown you, how do you create the financial dimension, right? So you just click on this ad segment. Sorry, please cancel this one. So by mistake I have clicked on this add button. That is the reason the system is giving me some issues here. Just remove this and try to add a segment here. So the new financial dimension that we created is department SG is the one that we created.

But if I look at this one here, I don’t see that department SG here, right? Even if you try to look for it, you don’t see the department here. Why? So let us go back to this one. Let us go back to our financial dimensions. So to go to financial dimensions, I can search for the financial dimensions here. Even if you are not in that particular form, search for financial dimensions and you can go there, right? So click on the financial dimensions. So you are seeing this message, right? Updates to a dimension will not take effect until dimension activation is run.

So last time we created the financial dimension but we did not run the activation. And that is the reason if you look at your newly created financial dimension, system is telling me that this is inactive, right? Even you can see the status here, this is inactive. So how do you activate this dimension? So you will be able to activate your newly created dimension by clicking on this activate. Okay. However, in this case, if I try to click this activate button here, you see, I am getting a warning message here. So system is actually not allowing me to activate this particular dimension. So let us just read what is it telling us. So the activation of dimension is only allowed when the system is in maintenance mode. So the maintenance mode can be enabled in this environment by running the maintenance job from LCS. So what is this? So I intentionally did not activate this particular dimension because that is pretty common that you will encounter these kind of issues in your real life projects, right? So sometimes what happens is that you will try to create your account structure and you will be looking for your financial dimension. And then you see the dimension is not showing up here. Then you’ll be thinking about, oh, I have created this dimension, but why is it not showing up there? So the reason behind that is the activation is not run and to be able to activate the dimension, the system must be brought into the maintenance mode.

So you can get the system into the maintenance mode through LCS. So LCS is a short form of Lifecycle Services, which is a web portal used for managing the Dynamics 365 finance and operations environments. At the end of this course, I will give you a brief introduction about the Lifecycle Services and a few basic things that you should be knowing in the Lifecycle Services web portal and how do you manage some other environments. Okay, so there are only a few tasks that will really need you to get the system into the maintenance mode. And one of those tasks is this one, activating the financial dimension. So it is mainly because of the reason that when you activate the dimension, system has to do some table schema level changes in the background. And that is the reason Microsoft designed it in such a way that you will have to get the system into the maintenance mode.

Okay? So to be able to do that, you can definitely approach your technical consultant or a developer who is working with you in that particular project. So they can help you with getting the system into the maintenance mode. So there will be an option in the Lifecycle Services where you go to that particular environment and then click a button to get the system into the maintenance mode. Okay? So once that is done, then you will be in a position to go ahead and activate the particular dimension. Okay? So once the dimension is active, only then you will be able to make it part of your structure. Fine? So for time being, what I will do is because our intention in this video is to activate or create a new accounting structure, right? So let us go ahead with an existing financial dimension that is already active, okay? And certainly I will also get this department SG dimension activated so that we can use it for our Singapore entity. Okay? So for now, what I am doing is instead of taking the department SG, I am taking this department as my financial dimension that I need. Okay? Let me say add the segment you see, I now see the department as my dimension.

Then, oh, I did the same mistake. But let me just explain you here. So there should not be any overlapping main accounts when you’re defining the accounting structure. So if I try to save this one, so that is where system will give me some problem. Here the row with the department star overlaps with the row with the other star. Okay? So what basically happens is that you can use this column to define certain conditions. So what departments can be selected so to be able to accommodate those scenarios. So your main account should not be overlapped. So I will discuss a little bit more about this overlapping and all that as we go forward.

So for now, just remove this one, say yes, close this one and save it now you will not get any errors. Now if I have to add another dimension, I just add segment and then I need the department. So just think about this as something that we are mimicking the configuration for ESMF company, okay? So I want to take a department sorry, I want to take a cost center, right? So I can take a cost center here, okay? So that way you can create your accounting structure. Fine. Now let us take a look at our account structure that is there for us MF company, right? So it looks like there’s a small problem here. So I open up this ledger and I’m going back to this particular account structure right now. How do you select this main account here? How do you tell the system that this business unit and department must be showing up only for these accounts, right? So let us just mimic this configuration as well. I go to my account structure and here I am focusing on this main account field here, okay? So after I do that, you see here, so this is where I can define it. So this structure is for which all the accounts, right? When I focus on that particular main account, system tells me that where main account is like star which means no matter what is there in the main account, we need to see the department and cost center.

So in the journals if somebody selects a travel expense account or Pedicache account or whatsoever the account is. So that is what I’m telling the system that do not look for account. So a star means the value can be anything. So any value that is there in the main account, I want the department and cost center so that is how it is defined here. But if we need to tell the system like the department and cost center should be shown only when the account is between one double zero, triple zero to some other account, right? Then what you do is you select this condition here is between and includes, right? Or sometimes you can take is greater than and includes, right? So in current case you can tell the system like is between and includes.

So here you mentioned one double zero triple zero through three double line, triple line, okay? So with this, if you try to apply this one so this is where system can take the main account configuration that we did here down when you applied it. So that is how system has saved our changes, okay? So that is how you create the account structures fine. Once after you create the structures, then what we do is you go back to the SGPC company because I wanted to show you, like how do you associate this particular structure to your company. Okay, then I’ll say add and what is our structure name? That is SGPC. Starts with SGPC, right? So I say there is another thing. So the account structure that we created, even this needs to be activated. Okay. So let’s try to activate this now. And you see it is popping up a bad job form here. So we will talk about the batch processing later.

So this batch processing, so this is the job that we are running, where we are activating this particular structure. Okay, so activate account structure. You do not need to change anything here, just say activate. So once this is activated, you will see the status as active. So once that is available as the active account structure, that is where you go to the ledger and try to search for that. You see here, I see the SGPC structure. You see now we added a new structure for our SGPC company, right. So let us end this lecture with looking at the result of what we did. Okay, what I will do is I will go to the general journal, I create a new journal, and just for demonstration purpose, I have created a journal name in this company, SGPC. But you will learn about how do you create the journal names and what is the purpose of journal names little later. Okay, but in the SGPC company, I have created it before showing it to you. How do you create it? So I go to the lines and let us look at our accounts. You see this is what we have added, right? Department and cost center.

So with that, we are done with the account structure creation, but we have a lot more to COVID when it comes to the account structures, right? So in the next video, you will be learning more about the different things that you can do with the account structure. And at the same time, why do you need to have multiple account structure? So we will be covering them in detail in the next video. So for now, let’s close the account structure creation topic with the definition that account structure is nothing but your main account, plus your dimension one, dimension two, plus your N dimensions. So together in the system, you can call that as an account structure. All right, so thank you so much for watching and see you in the next video.

  1. Account structures

Welcome back, everyone. In the previous video we looked at how can you configure the accounting structure so that users will be able to see the financial dimensions that are required for the business, right? So you go to the accounting structure and add the different segments. So that is what we did. Now the question is, do we need more than one accounting structure for the company? And if we need it, what is the reason that we have to have more than one accounting structures, right? So to be able to discuss more in detail with you, I want to introduce you. I want to give you more details about Contoso’s business, right? So far, we have been creating the vendor invoices or some sort of simple journals, right? But we did not discuss about what is the business of contoso, correct? So Contoso is in the business of selling the audio, TV and video related products and even the core audios and personal computers, right? So typically, these are the different product groups or item groups that Contoso, as a business, sell it to its customers, okay?

So they purchased the raw material and produce some of these items in house, then sell it to their customers, right? So that is their business. So now let us keep these item groups aside. So the reason that we are talking about these item groups is just because item groups is also one of the dimensions that they have in the accounting structure, okay? So we talk about why should they have the item groups as part of their dimension, okay? So let us keep this aside. Now let me introduce you to the contest for entertainment systems organization structure, okay? So if you look at the products that we looked at in the previous slide, all of them are either belong to the automobile sector or else they belong to the home related products, right? So the TV and home theaters, they fall under home where in the car audio systems, they fall under auto, right? So their range of products that they sell it to the customers, they fall under either auto or home, correct?

So that is the reason they have them as their business units. So they call these two as their business units. So you will also see some of the customers calling the same things as product lines, okay? That’s nothing. But they have two different product lines. One is related to the home and other one is auto, right? In the condos or business, they are calling them as business units. Okay? Now let us look at the second level in the structure. So these are the departments. So sales and marketing, finance, it department operations, human resource and legal. So typically, any organization will have these departments. We certainly know, like what is the responsibility of each of these departments, correct? Now, within the sales and marketing, so they have these two cost centers. So cost centers typically contributes to the revenue indirectly.

So they’ll not have the direct contribution, but they’ll indirectly contribute to the revenues. So revenue generation. So within sales and marketing, they have two cost centers, trade shows and marketing because typically they incur the expenses for these two cost centers. So similarly, they have the procurement and administration within the finance department and within the operations department they have these four different cost centers. Okay? Now any expenses that are incurred by these cost centers, they will be rolled up to the department. So from the reporting requirements, the transactions posted for these cost centers, the business decision makers would like to see the data rolled up to that particular departments for various reporting reasons, reporting requirements. So this is the structure of Conducive Entertainment systems. So you have the business units, you have the departments and you have the cost centers. Okay? Now if you look at the Contoso’s accounting structure, if you remember we have been looking at the accounting structures from the ledger form, right? So there you have balance sheet related structure and the Pndl structure.

Okay? So those, those of you who are from non accounting background, I believe that you will have to get some understanding on the balance sheet and the Pndl, which is also called as income statement, right? So these are two typical statements that are required in the business, the balance sheet and the income statement which is also called as PNL statement. Within PNL statement, you will have the expenses and revenues. And in balance sheet you will report the assets and liabilities. Okay, so what are the typical expenses or revenues? So as we discussed about travel expenses is one of our expenses, right? Similarly purchase expenses, printing expenses and material moving expenses.

So there can be a lot of expenses. Okay? And all these expenses will be part of the PNL, okay? And you will have separate accounts for all these different expenses. And for these expenses it makes more sense that we track to the level of which is that cost center that is actually incurring that expense. Okay? So that is a reason for Pndl, usually it makes more sense that you include even cost centers, okay? So that is a reason in the Contours structure within the Pndl, we have four dimensions and one of those dimensions is cost centers, okay? Now when it comes to revenues, so revenue is something when we sell an item to the customer, the amount that we supposed to get from them is the revenue. Your revenue account will get hit there because the other side is it is accounts receivable account and the other one it is revenue.

Okay? So when you’re looking at your revenues, it makes more sense because at least in the view of CONTESTO decision makers, the business decision makers, so they think that when they’re looking at the revenues, they want to further drill down the revenue by item group. Out of those four or five different item groups that we have, we need to know the revenue is being generated because of which item group. So this typically helps to management that which items are generating more revenue and which items are not generating any revenue, okay? So that way we can think of deploying more people in promoting the sales and bringing more revenues for those item groups. Okay? Or else we might also take a decision that no, we don’t want to sell these products anymore because the revenues are less and eventually the profits that we might be making could also be less, right?

So that way it makes more sense for the PNL related accounts that we have both cost centers and item groups. So that is the reason they have these two dimensions as part of the PNL structure. Okay? But when it comes to the balance sheet, we will have only the assets and liabilities. So there it doesn’t make great sense that we include item groups and cost centers there. So that is a business decision, right? So that is where they have only business unit and department. Okay? So when you want two different sets of dimensions to be shown so that is where you have more than one accounting structure be configured. So usually many implementations what we do is that we have two different structures. One for PNL and the other one for balance sheet. Okay? So some other implementations, so those implementations are pretty simple implementations where they might say that we have just two dimensions and the dimensions are common across all the accounts, right?

So that is when we might go with a single account structure as well. However, so typically it is better that we go ahead with two account structures. One to represent PNL and the other one is balance Sheet. Okay? So that is actually a recommendation that I have for you. Fine. Now let us take a look at this. In the system, I am in the US MF company now, the US MF legal entity and I am in ledger form. So within the ledger form you can see here I have these structures, right? So forget about this statistical. So this is a structure that is newly added for some different purpose just to look at the headcount. So you don’t need to really worry about this one or you don’t need to even know about this one for now. So the other two commonly used structures are balance sheet and PNL.

Okay? So now let me just open this one. We looked at them even before, but after our understanding, I just want to show you these two structures now. So within this structure so we are using this accounting range, right? And we are having only this business unit and department.

Okay? So if you go to these main accounts and look at these account types you will see them as either asset account or liability account. All of these accounts could be part of your assets or liabilities. So similarly, the other accounting structure that we have is this PNL, right? So here we have this accounting range. All these accounts are either expense accounts or revenue accounts, okay? So that way, based on your business requirement, you will have more than one accounting structure. Fine. So with that, I believe that you understand why do we have more than one accounting structure? In contours of environment, what is the best practice in terms of creating the accounting structures? Right, that is all for this video, and see you in the next lecture. Thank you.

  1. 13. Defining valid dimension combinations through Account structures

Welcome back, everyone. In the previous video, we looked at Kantoso Entertainment Systems organization structure, right? So this is the structure, and one thing that is clear here is within the organization structure, we have these different departments. And underwritten, we have these cost centers, right? So when you take Sales and Marketing, you have these two cost centers. And when you take Finance, then you have these two cost centers, right? Similarly, operations, these are the cost centers that are available, correct? So what happens if in case a user selects Sales and Marketing as a department when they’re booking some transactions and they choose procurement as the cost center? It doesn’t really make any valid sense, right? So that is the reason it is important that we control within the system that which are the valid combinations.

So that way we can stop users from selecting invalid combinations, isn’t it? So, instead of telling them this is what you will have to select all the time, we can also put some restrictions within the system so that when Sales and Marketing is selected, they should not choose this procurement at all. So system should not allow them to choose this cost center. So that is what we are looking at. So how do we set up those combinations? All right, so with this introduction, I will take you into the application now so that we can see how can we configure the accounting structures and set up these combinations. All right, I am back to general journals now.

So let me just take any existing journal that we created and let us click this lines. I am in the lines form, and I have this account already selected here, which is for purchase expenses, I guess. Yeah, so this is for purchase expenses. And as we discussed, based on our accounting structure, I have these four dimensions here, correct? So within this dimension, I have different values here. So I have my home and auto. So you might be wondering, like when our counterfeit Entertainment Systems USA is into the business of only home and automobiles, what are these other dimensions values here, right? So these are the other business units where contoso is dealing with in the other legal entities. So, as we discussed before, financial dimensions is a shared form, and these values are actually related to other legal entities, other companies. Okay? So if we want, we can also restrict people from choosing these other financial dimension values here. Gather business units. Okay, for now, let’s just keep going with this one. So I have the home selected and let me select the Sales and Marketing as my department. So, do you see here, based on what I have selected, I am seeing only these two cost centers, isn’t it? So let me take the Finance and Finance.

Then you see I’m seeing only these two cost centers. So that way it is very important in certain scenarios where based on the dimension value that is selected by your user, your next level dimension values should be populated, right? So that is the kind of configuration that you can control in the accounting structures. Okay, let us now take a look at this for now. So that gives us more clarity on what you can do with the account structures, right? So let me take you to the ledger form. I will duplicate this and let us go to the ledger form because that is where we can see what is the accounting structure associated to this particular company. Correct? So out of them I would like to go to this Pndl accounting structure because the account that I’m selecting is the purchase expenses, right? So expense is part of the profit and loss statements.

So let us take a look at this one here. Firstly, I will just explain you this particular structure and then we will be able to create either a new structure or else probably we will try to mimic this configuration so that this is actually a complex configuration. And if we mimic this, then you will be in a position to understand how do you do the complex configurations as well. Right? So let’s take a look at this one here. So what is being said here? All the accounts within this range and when you, when you have to define this particular range, we already looked at it, you will have to take that particular main account and the operator is between and includes and then you specify your values. So whatever that you are defining in this particular line, that applies to only this selected ledger accounts. Okay? So here, let us focus on this one here.

So when I put my focus here, what does it say? Business unit is like star. So when it says star, anything can be entered. So whatever the business unit may be, you show these ones here. Now let us focus on this department. Now, so when I select on this department as we talked about, so when the department is like 22 and that is where the next level one should be displayed. So let us now focus on the cost center. So in the cost centers, so the allowed options are like is between and includes the seven and eight. So obviously within seven and eight you’re going to have only those two values, right? So that is the reason when I select the department as 22, we will see only seven and eight as my cost centers for selection. Okay? At the same time, let us also focus on this. Blank values are allowed. So when you say blank values are allowed, you can either choose seven or eight or else you just leave it empty, right? So even the user enters empty. So that is okay.

So that’s what we are saying. So some implementations what happens is that you get the requirement that that dimension is mandatory. So we need the end users to definitely enter the cost center. So do not allow them to enter blanks. So that is the kind of a requirement that you will get. So in such cases, what you will do is you will disable this flag here. So you will not allow people to enter blank values there, right? So let us take a look at this one here. So based on this 22, I see only seven and eight, right? So that is how it is actually coming up right now. Let us do a quick check now. So what we do is I will edit this accounting structure, okay? Because our intention is that for example, just for the sake of understanding, I do not want people to select this 14 or else let us take this example, nine to twelve, right? So before we make any changes, let us go to this journal voucher and select the department 23 and see if we are going to get this nine to twelve. So I select 23 and we are seeing four values here, right? So our intention now is that we don’t want logistics anymore for users to select. Then what I do is I have selected this particular line and here I want it to, to include only zero nine through eleven, right? So that’s what I did.

If I make any changes, let us apply this. And remember, whenever you make some changes to your accounting structure, you will have to activate the structure. So when you activate the structure, you’re going to get this activate account structure form. And so by default, these forms are enabled with the batch processing. So batch processing is something where you do not want to freeze the system resources, right? When this process is happening, you still want to be able to go ahead and do something that you would like to. So that is where these batch processes will be running in the background. So you will learn about the batch processes in detail later. So for now, let us just wait for this. So it is currently showing the status as activating, right? So let us just try to refresh and you see this is active, right? Once this is active, then we can go back and check our voucher.

Okay? So let us try to delete this line because at times it is important that your form be refreshed so that it can read your current configuration. Let us escape this. We don’t want to make any changes. Let us create a new journal. Go to lines here. I select the same purchase expense. I just typed it and I did an alt down arrow. And then I’m selecting this account, select the business unit and the department was 23, I guess, isn’t it? Which one we edited? Yeah, this 123. So I selected 23. And what are the options that you’re seeing? I’m seeing 910 and eleven. Okay? So that way I’m restricting what should be entered by the user. And for example, even if the users take a different Cost center, system will stop them from posting this journal. So if you click this show all, so by default it will respect your accounting structure. Okay? But for some reason if you want to override it, you will be able to show all and they’ll be able to see what are the other cost centers that are available. But still, if they select this quality control sorry, so quality control is a valid one, right? So let us take something else. So if they select this 13 and try to post this journal, you see you’re getting a message here.

The Cost center 13 is not allowed value for the combination, okay? And when you click this message details, it gives you full details about your dimension related errors. So always make sure that you read through this error messages or warning messages that you get with reference to the financial dimensions because system clearly tells you it is a matter of you understanding it. Okay? So cost center 13 is not allowed value in combination with the following dimensions. So you can see here, it is talking about this main account that we entered and the business unit and the department that we entered. And it is telling us that the combination was not validated beyond the cost center financial dimension because this cost center that is entered, that is not valid first of all. And it also tells you that which structure that it is validating it.

So manufacturing PNL, then you straightforward get into your manufacturing PNL and see which one that your account is falling into. So you see here, it is falling into this main account structure and again you have four different ones here. Out of these, which one that yours fall into now, because you’re talking about the business unit one, business unit one can be again, all the four lines here are still valid. Now it is talking about 23, right? The department 23. So where does that fall? It falls here, right? 23. So then it gets validated against this line. So there the values that are allowed are only between nine and eleven. So that is how system will actually stop you. So it is possible that when you are doing some sort of purchase invoicing or a vendor payment journal or vendor invoice journal or a lot of places, you might get this warnings. And sometimes if you’re working for some support projects, you might see some other support tickets where people will request your support that I’m entering a value and I don’t see why I’m getting this particular error, right?

So that is how you help them to validate this particular structure and get rid of that particular error, right? So that is how the account structures can be configured to create or to ensure that only allowed values are entered by the end users, right? What do we do now is let us quickly create a new accounting structure. So as I mentioned, let us try to mimic this particular configuration. I am going to configure account structures, form and create a new structure. So let us assume that I’m creating a new structure for my SGPC company and this is for PNL, okay? So we may use this or we may not use this structure, but we are just creating this structure at this point in time so that we better understand how do you create the structures. So I have this new structure that we created and I want to add a segment. So the segment is business unit. I need the business unit then add another segment which is department. Department is here and cost center.

Okay? So I entered the cost center. Now here, I don’t want to allow all the main accounts, right? So that is where I focus on this particular main account field. Scroll it down. So here it tells me where main account is between and includes let us enter four double zero, triple zero and I missed to apply this. So that is a common mistake that we do. So select this again. So once after you make some changes, apply them so that your changes will get saved, apply. And you see here, I got this. Now what we do is let us allow all the business units, right? So when you click on the business unit, you see here business unit is like star. So all the values are allowed here and I do not want to allow any blank values. So I don’t want to enable this. So that is a little difference here.

So here, so the blank values are allowed in this particular structure. But in the new structure that we are creating, we want users to definitely select the business unit. So I don’t want them to skip that business unit selection, okay? And when it comes to department so let us focus on the department and come down. So for now, what we do is select the department is 22. So when the department is 22, then what should happen? And even here, let us not allow any blank values, apply this and that is done. And what are the cost centers that are allowed? The cost centers are seven and eight, right? So this is what we wanted to configure. So in the cost centers is between and includes seven through eight. And here let us allow the blank values and apply it.

So you see this difference here. So you got this double quotes here. So when you see them, that means the blank values are allowed, correct? I applied it and you can activate this one, right? Even before activating, I just want to show you something. I create another run because sometimes you get the overlapping errors. I just wanted to give you more understanding there. So your main account is like again, sorry, is between and includes 40 triple zero through this one and apply this right you see here. So the row with department 22 overlaps with this row. So what does that actually mean? So this is actually a tricky question for the system that which one is really valid. Because if you take 22 now 22 department, this can also be 22 related structure and this can also be 22 related structure, right? So that is the reason. First of all, you will have to configure this for department. So if the department is 23, then system allows you to save it. So that is how you avoid the overlap errors when you’re configuring the accounting structures. Right? Now let us try to activate this one. I activate this structure now I say activate and it is still an activating state. Just try to refresh it and you see it is active now. Fine, so this new structure is active.

Now what we do is let us take this structure and we go to our SGPC company. I go to SGPC company and go to the ledger form. So here let us add our new structure PNL. So even when you’re trying to add the accounting structure to your ledger form, even then it checks for the overlapping. So mainly it checks for the main account overlapping. Because just think about a case that my balance sheet structure has accounts within this particular range, right? And if you have the same accounting range even for this one, it doesn’t really know which dimensions that it has to populate, right? Because here, I’m just giving you a case here, right? For example, here you’re talking about this one double zero, triple zero on this account, right? So here we are telling the system that we need only department and cost center.

Now if you go to even this structure and here you tell the system that I need four dimensions here, so which ones that it has to populate, right? So that is the reason it checks for the overlapping with the main accounts. So that is the reason when you look at the contest of demo Data USMF company as well, you see the accounts not overlapping in both balance sheet and the Pndl structure, okay? So this is done. So we have now associated our PNL structure to our SGPC company. So let us quickly go to the general journals, general ledger and general journals, right? I now go to the lines and let us try to look for the account. So let us type purchase.

You see, I have my purchase expense account and this time you are seeing three dimensions, right? And within the business unit I am seeing everything. And in the department I’m seeing only these two things here, right? Because that is how my structure is. I have allowed only 22 and 23. I say 23 and I’m seeing everything, but I say 22 that I’m going to see only. We see seven and eight, right? So with this we are done with this session and I believe you completely understand how do you create accounting structures and how do you find valid combinations that can be selected by the user? Right. So with that, let us close this session and thank you so much for being with me and see you in the next video.