Change tracking dimension group by using the function "change tracking dimension group for items" has to be possible for Product with Item model group "Standard Cost" that have open transactions, as it is for FIFO products.
A product is filled with tracking dimension group "none" and item model group "standard costs". This Item has already transactions (inventory adjustment, purchase orders…) We want to change tracking dimension group by using the function "change tracking dimension group for items". we closed all transactions (invoiced, posted…) and set the on-hand inventory to 0. After this we ran the "inventory closing" and start the function "change tracking dimension group for items". We received an error message: "The new dimension group cannot be assigned. Physical inventory transactions might exist and/or financial inventory transactions are not fully settled, while 'Activate closing of non-financial transfers' is set to Yes."
The reason is: Value open = yes (transaction details) this cannot be set to "no" because of the standard costing method on the item.

Søren Vagn Andersen (administrator) on 4/16/2020 4:39:13 PM
Thank you for your feedback.
We released this feature as part of the functionality in the April 2020 release (10.0.9) of Dynamics 365 Supply Chain Management.
Sincerely,
Søren Vagn Andersen, Principal Program Manager
Microsoft.