Dimensional Modeling in Financial Reporting Systems

By Tom Nonmacher

The modern financial reporting systems are increasingly moving towards dimensional modeling. This design concept, which structures data into a form that is easy to understand and navigate, is becoming a vital tool in financial reporting systems. This blog post aims to delve deeper into this concept, providing insights on how to use technologies such as SQL Server 2012, SQL Server 2014, MySQL 5.6, DB2 10.5, and Azure SQL in implementing dimensional modeling in financial reporting systems.

In the context of a financial reporting system, dimensional modeling can be defined as a technique used in designing a database to support the business operations. It involves breaking down a complex system into manageable, understandable parts (dimensions) that can be easily analyzed. These dimensions, which can be things like time, products, or locations, help provide a clearer understanding of the business operations.

To illustrate, let's consider a basic example using T-SQL on SQL Server 2012. Suppose we have a sales database with tables for products, sales, and time. The sales table is the fact table, while the products and time tables are dimension tables. These tables are joined using foreign keys.


-- Create dimension tables
CREATE TABLE Products (ProductID INT PRIMARY KEY, ProductName VARCHAR(50));
CREATE TABLE Time (TimeID INT PRIMARY KEY, Month VARCHAR(10), Year INT);
-- Create fact table
CREATE TABLE Sales (SalesID INT PRIMARY KEY, ProductID INT, TimeID INT, QuantitySold INT, FOREIGN KEY (ProductID) REFERENCES Products(ProductID), FOREIGN KEY (TimeID) REFERENCES Time(TimeID));

When using MySQL 5.6, the process is similar. We create dimension tables and fact tables, then join them using foreign keys. However, the syntax will be slightly different. Here's how you can do it:


-- Create dimension tables
CREATE TABLE Products (ProductID INT PRIMARY KEY, ProductName VARCHAR(50));
CREATE TABLE Time (TimeID INT PRIMARY KEY, Month VARCHAR(10), Year INT);
-- Create fact table
CREATE TABLE Sales (SalesID INT PRIMARY KEY, ProductID INT, TimeID INT, QuantitySold INT, FOREIGN KEY (ProductID) REFERENCES Products(ProductID), FOREIGN KEY (TimeID) REFERENCES Time(TimeID));

Both SQL Server 2014 and Azure SQL offer support for dimensional modeling. With these technologies, you can leverage built-in analysis services to quickly and efficiently analyze your data. Azure SQL, in particular, provides easy scalability and flexibility, making it a great choice for businesses that anticipate growth or have fluctuating data needs.

DB2 10.5, with its multi-dimensional clustering (MDC) feature, allows users to create and manage large databases in a much more efficient manner. DB2's MDC can be used to create a table that groups data by dimensions, which can significantly improve query performance.

In conclusion, dimensional modeling is a crucial aspect of modern financial reporting systems. It provides a clearer understanding of business operations, allowing for improved decision making. By utilizing technologies such as SQL Server 2012, SQL Server 2014, MySQL 5.6, DB2 10.5, and Azure SQL, businesses can effectively implement dimensional modeling in their financial systems.




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