How to Report on Asset Leases in Dynamics 365 Finance & Operations

If a finance team member or leader, or anyone else needs to report on asset leases (for instance, for the Board of Directors) from Dynamics 365 Finance & Operations, this article will tell you how to get the information you need.

Read more about Setting Up Asset Leasing in Dynamics 365 Finance & Operations here and Using Asset Leasing in Dynamics 365 Finance & Operations here.

Most of the information will be available through the Inquiries and Reports section of the Asset Leasing module, although some metrics can be found under Leases. Below, I’ll briefly overview the different reports you can access, what information they can provide, how to fill them out, and what the results will look like.

These reports are system generated and can’t be customized without the help of a Dynamics Partner or developer.

Note: There is currently (as of September 2023) a bug in the report called Books not yet acquired.

Even though most customers, commentators, and consultants still call it Dynamics 365 Finance & Operations or D365FO, Microsoft now technically licenses it as Dynamics 365 Finance and Supply Chain Management.

Expiring Lease Query

Under Asset Leasing -> Leases, there are two good reports. The first one is Expiring lease query, which can show you which leases are going to expire in a short time. You can choose to see the leases that will expire within the next 30 days or within the current year. See the list below:

Screenshot of D365 FO showing Expiring lease query.

Lease Adjustment

The second report under leases is the lease adjustment. This report helps you to focus on your adjustments and follow their progress after using the adjustment wizard.

Screenshot of D365 FO showing Lease adjustment.

To view other Asset leasing reports, go to Asset Leasing -> Inquiries and reports -> Lease reports and then select a report to view. For the reports that require a different selection path, the steps to open the report are included with that report’s description.

When you select a report to print, a parameters page will open that lets you filter the information that’s included on the report. Enter filter criteria, and then select OK to generate the report. The generated report will show information that falls within the filters that you specified.

Asset Movement

The Asset movement report serves as a roll forward report for the right-of-use asset balances for each lease. This report lets you view the asset transactions of a lease during a specified period.

Screenshot of D365 FO showing Asset movement. Screenshot of D365 FO showing Asset movement report.

Differences Report

The Differences report shows the differences between information loaded into the Lease import framework and the information that’s currently in the system. This lets you compare what was adjusted, updated, or added through the Lease import framework.

The values in the report will vary based on the selected lease. The report will only show those fields that differ from what is currently in the system and what is in the staging tables. The old value is what is either currently in the system or what was previously in the system, depending on whether the import process has run. The new value shows the value that’s in the staging table that will replace the old value.

Five-Years Undiscounted Payment Forecast

The Five-years undiscounted payment forecast report shows the projected undiscounted lease payments to be paid over the next five years from the date specified on the report parameters.

Screenshot of D365 FO showing Five-years undiscounted payment forecast. Screenshot of D365 FO showing Five-years undiscounted payment forecast report.

GAAP Cash Flows Report

The GAAP disclosures report satisfies the US GAAP disclosure requirement specified in 842-20-50-4(g)(1).

Screenshot of D365 FO showing GAAP disclosures. Screenshot of D365 FO showing GAAP cash flows report.

Lease Balances Forecast

The Lease balances forecast lists information directly from the liability amortization schedule and asset depreciation schedule. The report shows forecasted amounts of the projected lease liability, and right-of-use assets over a period of time, including all projected expenses for those leases.

Screenshot of D365 FO showing Lease balances forecast. Screenshot of D365 FO, showing lease balances forecast.

Lease Commencements Report

The Lease commencements report shows all leases that have commenced within a specified date range including the initial liability and right-of-use asset balances.

Screenshot of D365 FO showing Lease commencements. Screenshot of D365 FO showing Lease commencements report.

Lease Modification Report

The Lease modification report shows all leases that have been modified within a specified date range. The report also shows the user who adjusted the lease, and the total amount of liability adjusted.

Screenshot of D365 FO showing Lease modification. Screenshot of D365 FO showing Lease modification report.

Lease Movement Report

The Lease movement report serves as a roll forward report for the lease liability balances for each lease. This report allows the user to view the liability transactions of a lease during a specified period.

Screenshot of D365 FO showing Lease movement. Screenshot of D365 FO showing Lease movement report.

Lease Transactions Report

The Lease transactions inquiry shows all the journal entries that have been generated by Asset Leasing. Each journal entry is linked with the book ID it originated from. This lets you easily associate the journal entry with corresponding lease. The Lease transactions inquiry functions in a manner that’s similar to the Voucher transactions page in General ledger.

Screenshot of D365 FO showing Lease transactions. Screenshot of D365 FO showing Lease transactions report.

The more you define the above, the better report you will get. In this case nothing has been selected, and therefore everything is included.

Weighted-Average Discount Rate Report

The Weighted-average discount rate report satisfies the US GAAP disclosure requirement specified in ASC 842-20-50-4(g)(4) for a weighted-average discount rate.

Screenshot of D365 FO showing Weighted-average discount rate. Screenshot of D365 FO showing Weighted-average discount rate report.

If you’d like to learn more about Asset Leasing in Dynamics 365 Finance & Operations, please contact us.

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