Analytical Accounting in Dynamics GP allows you to easily add information to any journal entry to support subsequent selection and categorization of financial data with in your system. Some use it as a simple project/cost accounting tool.
The essence of Analytical Accounting is that you can add additional information to help better identify and define any journal entry. You can enter data of various types, e.g. date, text, Boolean.
You can set up several levels of information, e.g. Project > Task > Sub Task. The data entry function is pretty easy, the reporting is less so.
Here’s a video that shows you a simple example: http://youtu.be/-c1nQ6lGLqg