Changes are constant. Challenge is what most of the companies are going through nowadays. At the same time trying to control everything leads to loosing sight of such matters as reacting to changes in accounting regulations that are risky to leave without attention.

The main mission of Dynamics 365 Finance is automatization of regular global financial operations reducing risks. To solve this problem Microsoft is launching asset leasing in November 2020. Solution will help organizations to be compatible with the FASB and IFRS 16 accounting regulations (lease management and its impact). The benefits of the technology are: reducing manual errors due to automatization of lease status updates, calculation of net present value, analytics and full control, lease interest and future cash payments.

The features of asset leasing:

What asset leasing can be helpful with?

It makes such operations like complex lease calculation of present value, future lease payment, lease liability amortization, expense schedules automated.

Allocates the lease into categories: operating or finance, either short-term or low-value lease. Ownership transfer, purchase option, term, present value and unique asset are included in classification tests.

Brings together important information about commencement and expiration dates, currency amount of payment and its frequency.

Makes it easier to develop initial accounting entries and further evaluation of the lease liability and right-of-use asset.

Accelerates operations and saves time of complex calculations and automatic transactions.

Different reporting purposes can be used via posting to different layers, for example, tax reports which can be found in Dynamics 365 Finance.

Meets standards of representing leases using the Balance sheet impact calculator.

Manages the integrity of lease data to make sure transactions coincide present value, amortization and future payments.

Gives an opportunity to import data from Excel.

Helps with preparation of asset leasing reports.

All information used every day like chart of accounts, fixed assets, currencies and so on is integrated.

Article publication source:
https://cloudblogs.microsoft.com/
dynamics365/