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Financial Tags in Microsoft Dynamics 365 Finance: A long-awaited feature is finally here

by Yogesh Kasat
Consultant & Founder, Real Dynamics
[caption caption="Source: Microsoft"][/caption]

As part of continuous improvements to Dynamics 365 Finance, Microsoft has released the long-awaited Financial tags feature. Many of my customers, especially financial planning and analysis (FP&A) teams, have asked for this feature for some time.

Why Financial Tags

Traditional Financial dimensions in D365 allow users to report and post by department, cost center, and more. However, you would not use a financial dimension if:

  1. There are a lot of values in the list, which creates performance challenges and overkill
  2. You want the ability to modify the dimension value after posting

Financial tags will fulfill both of those gaps. Now you can change the value of the tag after posting or use a tag for a list with a lot of values.

Some practical examples

  1. Stock # - Solar company or auto reseller wants to keep track of all the transactions for a specific unit throughout the life of an asset.
  2. Vendor accruals - Keep track of accrued expenses by vendor in the General Ledger, instead of maintaining Excel files outside the system to track Vendor ID for expenses coming through accrual entries.
  3. Lot - Expense tracking by specific lots, value add, etc. going directly through AP/GL
  4. Marketing campaigns - tracking marketing campaigns is not a perfect candidate for a financial dimension as you don’t want to keep adding too many financial dimensions. But Financial tags can serve this purpose to track expenses by marketing campaign.

Financial tag values used within D365 are not critical for financial reporting outside the company, but they can be important for the internal reporting by FP&A teams. These teams need the ability to make changes to transactions after posting rather than reclass journal entries.

Here are a few highlights:

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About Yogesh Kasat

Yogesh Kasat is one of the founding members of Real Dynamics. For more than 10 years he has worked as a Solution Architect and other leadership roles on numerous Dynamics AX implementations, taking several large engagements to successful completion. For more information on Real Dynamics services, please contact us at

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Real Dynamics is one of the first Microsoft Dynamics AX IV&Vs (Independent Verification and Validation services provider). Our goal is to help businesses and their internal IT teams take their Dynamics AX implementation to the next level with independent and unbiased recommendations. "Where were you before? I wish we had found you sooner!" - This is something we hear a lot as we uncover opportunities for customers to realize the true potential of their Dynamics AX investments.

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