Use business units for locations
A business unit represents a physical branch, office, campus, warehouse or other location. Use a consistent list and assign the location when a transaction relates to it.
Use reporting tags for virtual views
A reporting tag can represent a service line, department, programme, campaign or other management view that does not have a separate physical place. Avoid creating overlapping tags that classify the same work inconsistently.
Apply dimensions at transaction detail
Where the workflow supports dimensions, select them on the relevant transaction or line. Multiline transactions can need different tags on different allocations; check that the whole document has been classified before posting.
Read both the slice and the company total
A tagged report should show activity by tag while retaining the overall company figure. Untagged amounts should remain visible or be explained, so a filtered management view is not mistaken for the complete financial result.
Examples are illustrative, not tax or legal advice. Your accounting policies and local requirements may change the treatment.