Dimension zones

A dimension zone is a group of enterprise dimensions that stay in balance when transactions are created in more than one dimension zone. Only your dimension 1 can be flagged for zone balancing.

Note: To enable this functionality, select Dimension1 Zone Balancing for the finance enterprise group. Dimension1 refers to the label that you assigned to Dimension 1 on the finance enterprise group.

Dimension zones behave in the same manner as accounting unit zones, but they apply to the entire finance enterprise group. For example, you create a dimension named Location, with locations that are defined for USA, Asia, and Europe. You can define each of these locations as a zone. The zone will be balanced across all of the accounting entities that are part of your finance enterprise group.

You can define a zone at any level of your dimension hierarchy. For example, a zone that is defined for the Europe location includes Europe and all of the child summary and posting locations under Europe. You can define a zone for a summary dimension or for a posting dimension. For each zone that you define, you must specify the dimension where the automated zone balancing journal entries are posted. If the zone is for a summary dimension, then you must specify a lower-level posting dimension. If the zone is for a posting dimension, then you must specify the same posting dimension to post the balancing entries.

If you use dimension 1 zone balancing, then you must designate one zone as the default zone for the dimension. The default zone is used to keep all transactions in balance when transactions cross zones. The default zone is used on transactions, but it can be overridden.

Note: If you change the default zone, then balancing journal entries are posted in the new zone from that point forward. Previous balancing journal entries remain in the previous zone.

If you use dimension zone balancing, then you must also define an enterprise zone dimension. The enterprise zone dimension cannot be defined as a zone and must be a stand-alone dimension without parent or child dimensions. This dimension can also be your system dimension. This dimension is used to post balancing entries for transactions between zoned and not-zoned dimensions.