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365 Finance Architec

D365 Asset Leasing (IFRS16), Deeper Dive

Updated: Aug 29, 2023



In the previous blog we discussed Microsoft D365 Asset Leasing vouchers.


Today we will review the related setups and posting process for Asset Leasing.


1. Asset Leasing Parameters (Leases, Accounts, and Number sequences)

Create and assign the exhibited Journal Names.


Asset leasing > Setup > Asset leasing parameters



Assign the Main Accounts.

(See last week's blog for sample listing of Main Accounts to create.)

Choose the "Posting types for lease" to change Posting Type for various Main Account assignments.



Define your desired Number Sequences



2. Lease Groups

Create the desired Lease Group(s). For our example we chose "IFRS 16" or "COS".

Note both groups are assigned the "IFRS 16" Accounting Framework.



3. Create a Lease

Create a new lease as exhibited.

Assign the Lease Group created in step 2 above.


Note: Values are obtained from the Lease you have contracted with your vendor.

Asset leasing > Leases > Lease summary



Also create the payment schedule line details.




4. Lease Schedules

Lease schedules are used voucher creation.


Choose Books


This screen will display



After creating a Payment Schedule, be sure to confirm it.



Go ahead and create the other schedules.



5. Journals

Initial Recognition is the first journal you will create and post.


Note: See prior blog for applicable Main Account numbers.


All the journals are available to create from within the schedules, except the Short Term / Long Term reclassification.



Note: Since we did not select a Fixed Asset number,

the Depreciation is within the Asset Leasing module, not the Fixed Asset module.



Make sure to post all your Journals.



The Short Term / Long Term reclassification is run as a batch journal



Note: See prior blog for Main Account numbers used for Analysis.

The Analysis in the prior blog manually corrected the Short Term / Long Term Reclassification (without the Bug)


Exhibit: Known Error (not fixed by Microsoft as of blog date.)



This concludes the example setup and voucher posting process for D365 Asset Leasing.


Please also reference the prior related blog.







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