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D365 Asset Leasing (IFRS16)


#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.

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