Account dimensions are the properties of transactions. Depending on how a company wants to track the transactions, they put in different dimensions to describe the transaction. For example, the cost centre related to the transaction, or the equipment involved in the transaction.
Below is an example of the account dimension hierarchy. GL Account is the top dimension.
GL Account 6 digit number, 100010, hundreds of gl accounts, mandatory for all transactions to be in the ledger
all trans must be in the ledger
e.g. staff benefit
Cost Centre 4 digit, only related to P&L (profit and loss)
balanced sheet account (more to do with asset and liability) doesn't have a cost centre
the profit and loss (revenue, depreciation, etc.) generates the balanced sheet
Unit A concept for maintenance (e.g. truck, dragliner)
not every ledger has all the accounting dimensions
some trans don't have a unit
component components of unit, related to maintenance, (tyre, engine of a truck)
subdivision just a name, not a subordinate to division
nothing to do with division
can be anything, capital code, purchase order number, work order number, invoice number
something we use to track what the transaction is related to
project just a project number, e.g. Apollo 3 moon landing project
project element e.g. exploration, discovery, drilling, part of the project
NOTE, Division is not an account dimension, it is the entity that owns the accounting book? Different divisions have different accounting books?