D365 Finance & Operations and Dynamics AX Forum

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  • 1.  Leases - historical entry

    Posted Aug 22, 2022 01:16 PM
    We adopted ASC842 last year and have been maintaining our lease schedules in excel.  We would like to enter them into MSD but are don't see to find a clean way to get them in the lease module without opening prior periods or modifying all the JE date for the entries.  Other leasing software I have used have the ability to do "catch up" entries that catch the lease/asset entries up to the current date in one clean entry.  Has anyone found a good way to get leases & ROU assets already recorded manually in MSD Lease module?

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    Christine Barr
    Smart Technologies
    Calgary AB
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  • 2.  RE: Leases - historical entry

    Posted Aug 23, 2022 10:01 AM
    When MS bought the lease module they got rid of the conversion feature.  We migrated all of our leases into D365 1/1/21.  To get around opening all prior periods, you need to just enter the leases with their remaining payments.  Ie. if you had an existing lease with a start 1/1/20 for 36 mths, at your migration date of 1/1/21 into D365 you would put a lease term of 24 mths (remaining term at migration date).  This should calculate an ROUA value equal to where you were in your existing lease at the time of the migration.  It is fairly straight forward for simple leases.  If you have a step lease,  you will need to put the difference between the ROUA and ROUL at migration into the Deferred rent carryover box.  Your initial recognition entries of your migrated leases should equal your balances of your existing leases at the point of migration.  You will need to do a manual entry to your lease accounts to back out the effect of the initial recognition JE's so that it is not in the ledger twice.

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    Paula Buffa
    Director of Financial Planning/Analysis
    XTRA Lease
    St. Louis MO
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