Creating Time Dimension in BusinessObjects

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Is it possible to create a time dimension with values inside the BusinessObjects, and if yes, please explain how?

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Have a look at this site by Gino Scheppers. Gino created a generic time dimension framework that can be implemented in a BusinessObjects universe, aptly named the Ultimate Generic Date/Time Framework.

If you're using a recent version of BusinessObjects and Web Intelligence as a frontend, the TimeDim() function may also be of use to you. From the user guide:

The TimeDim time dimension allows you to build a time axis from a date type universe object. TimeDim returns the data for the dates given as the first parameter over the time periods given as the second parameter.