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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));

-- 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));

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