In D365 F&O, when a project is selected in an Item Journal line, the financial dimensions are inherited from the project master record and applied to both the debit and credit sides of the voucher posting. By default, the system debits the project for the cost and credits the transaction based on the item’s inventory posting which is balance sheet. Most of the times, customers use different account structures for Balance Sheet and P&L accounts and item journal can fail to post. By providing a separate offset account string for items, this error can be avoided, and client can use different financial dimension combinations for credit side of voucher posting. 

Example:

Preconcepts:

• Site is configured with a Financial Dimension.
• The Financial Dimensions configured for Sites have also Derived Dimensions values.
• When an order is created (PO or SO) and a Site is selected, all financial dimensions are populated based on the derived dimensions.
• Projects are configured with financial dimensions as well (different than Site financial dimensions).

This implies the credit side of the voucher posting to derive financial dimensions based on the Item’s Site. Customer has linked the Site inventory dimension with a particular financial dimension and configured Derived Dimension values accordingly. Expectation is for the system to inherit financial dimension combinations from the Site inventory dimension for the credit side of the transaction ONLY.

Note: This new posting logic could be parameterized, for the clients that want to use the current posting logic, this parameter must remain as "No", but for the clients who sees this a good opportunity they can use this parameter to follow new logic.