Using contact is not recommended because it is related to CRM functionality. Depending on your report, the field will also show up in a number of reports. You might end up customizing the reports to hide the field. Using dimension is one of the option, but it depends on how much end user information you want. If you only want Code and Name, dimension will do. There is also some considerations when using dimension, such as whether you can assign it to Global Dimension or not. If you can't assign it, you will need to click the Dimension button in the order to access it. A little bit of inconvenient and users may forget to put it in. It depends on what your current system setup and what kind of information you are expecting to get out of it.
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