Asset leasing

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Important

This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.

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Users by admins, makers, or analysts - Nov 6, 2020

Business value

Asset leasing helps customers feel more confident that they're following the proper accounting standards for ASC 842 and IFRS 16, reducing the risk of spending extensive time doing offline calculations.

Feature details

Asset leasing includes the following functions:

  • Automates complex lease calculation of a lease’s present value, and its subsequent processes such as future lease payments, amortization of lease liability, and the right-of-use asset depreciation and expenses schedules.
  • Helps automatically classify the lease as either operating or finance, or as a short-term lease or low-value lease. The lease classification tests include Transfer of ownership, Purchase option, Lease term, Present value, and Unique asset.
  • Centralizes the management of lease information, such as important dates, including the commencement and expiration dates, as well as the lease’s transaction currency, payment amounts, and payment frequency.
  • Helps generate accounting entries for the initial recognition and subsequent measurement of the lease liability and right-of-use asset.
  • Reduces time for complex calculation of lease modification and automatic adjustment transactions.
  • Provides posting to different layers to accommodate different reporting purposes, such as tax reports that are available in Dynamics 365 Finance.
  • Complies with the accounting standards to represent leases in balance sheets using the Balance sheet impact calculator.
  • Provides audit controls over the integrity of the lease data to ensure that the posted transactions match the calculated amounts of the present value, future payments, and liability amortization.
  • Provides tools to import from or export to Excel for all lease data.
  • Includes features that help in preparing asset leasing reports, particularly the preparation of disclosures and notes.
  • Integrates with your company chart of accounts, currencies, fixed assets, vendors, journals, data management, and number sequences.

See also

Asset leasing home page (docs)