#Dynamics365, #D365FSC, #D365FO, #AssetLeasing, #Setup, #Accounting, #IFRS16, #ASC842, #Configuration, #PostingProfiles, #Vouchers
Dynamics 365 Finance and Supply Chain automates Lease Accounting.
D365 will process transactions for both ASC 842 and IFRS 16
Today we will cover the process related to IFRS 16.
1. Chart of Accounts
Create the exhibited Main Accounts.
General ledger > Chart of accounts > Accounts > Main accounts
2. Posting Profiles
Assign Main Accounts per the table below..
Change the "Posting type for the lease" as per the table.
Asset leasing > Setup > Asset leasing parameters > Accounts (tab) > Select accounts > Lease accounts.
3.1 Vouchers
We will process the Asset Leasing transactions automatically using values related to the schedules displayed below in sections 3.3 and 3.4.
Process vouchers for:
Initial Recognition
Month 1
Payment
Depreciation
Interest Reclass
Short Term Reclass
Month 2
Payment
Depreciation
Interest Reclass
Short Term Reclass
Note: I have added Column A to create Pivot Table
Note: I have added 'Blog posting type' to clarify the out of the box posting types.
Exhibit: Exported Journal Vouchers
3.2 Vouchers, Pivot Table
See blog: Easy Accurate D365 Transactions via Pivot Tables instead of "T" Accounts (365financearchitect.com)
Exhibit: Pivot Table of Asset Leasing Journal Vouchers
3.3 Asset Depreciation Schedule
Notice that the Pivot Table transactions vs. the Schedule reflect that the Trial Balance and the Asset Leasing sub ledger are balanced.
3.4 Lease Liability Amortization Schedule
Notice that the Pivot Table transactions vs. the Schedule reflect that the Trial Balance and the Asset Leasing sub ledger are balanced.
In summary we have automated creation of balanced D365 Asset Leasing transactions for IFRS16.