Slowly Changing Dimension Type 3 ( SCD Type 3) tracks the history my adding separate columns for each version of record. As opposed to Slowly Changing Dimension Type 2 ( SCD Type 2) where we can maintain any number of history of record SCD Type 3 allows limited history of record as adding a separate column for each version is not a good practice. Generally it allows to maintain history up to 2 level.
e.g.
| CompanyID | CompanyName | CompanyLastLocation | CompanyCurrentLocation |
| 1 | ABC | Maharashtra | 1-Jan-00 |
| 2 | ABC | Karnataka | 22-Dec-04 |
After looking at above example it’s clear that with SCD Type 3 we can not track the history of Company movement if it moves again to new Location.
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