What is the difference between cost center and accounting dimensions?
Cost Center and Projects were previously the two ways you can have detailed accounting on segments of the business.
Accounting Dimension opens up the whole ball game of segmentation because you now use any DocType (like you can create a DocType of Branch, Location, Sales Agent, any type) and you can monitor it down to the transaction level.
As an analogy, Cost Center and Project are Links, and Accounting Dimension is the Dynamic Link.
With Accounting Dimension, you just need to include the DocType (as many as you like) and you can monitor your business according to that Segment.
Basically tagging transactions for department/branch/segments to know the financial result.
For example a company is having two branches B1 and B2 and you want record transactions in respective branch to know their profitability. In this case you can define branch and use it as financial dimension to tag transactions like sales, purchase and other accounting transactions.
Hope this will help you.