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Former Member
Feb 18, 2009 at 05:05 PM

Setting Up Profit & Cost Center Dimensions for Departmental Budgeting...

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Dear all:

Situation

We have a new project coming up for departmental budgeting, and I would like to know some best practices from the experts.

Data

We assign each department head to do the budget planning for his/her department. In addition, after each department head completes his part, the executives are to review the budget planning and make further modification (i.e. raise or lower the budget).

Questions

I have some basic questions about best practice of setting up Profit Center and Cost Center Dimensions

1. Do I use Entity Dimension for it, or create a different Dimension?

2. Do people usually combine both Profit Center and Cost Center in one Dimension or separate Dimension?

3. If we do not use Entity Dimension for Profit/Cost center, what do people use this Entity Dimension for?

Comments

Because the final number is a parent member aggregating values of "department head" and "executives" and maybe additional "adjustment", I can see the complexity in the process and would like to research thoroughly before developing.

I understand the answers may vary depending up each company's unique business flow. But if there's a general guideline for me to consider, I will much appreciate.

THANK YOU!

Sincerely,

Brian