Derived financial hierarchies - For Adhoc Financial Analytics

Derived financial hierarchies in MS Dynamics AX 2012 Public Sector solution are very useful for adhoc analytics and gives you the provision to associate the financial dimensions (including main accounts) with financial categories. This avoids entering the financial categories at the transaction level. In other words, these financial categories are sort of virtual dimensions. The derived financial hierarchies feature was developed in AX 2012 considering the CGAC requirements for US.

As far as using the derived hierarchies is concerned, you can use it either from AX rich client (GL>Financial dimensions>Set up hierarchies button>View filter results button) or from the Ledger cube (OLAP reporting).