In this video, we delve into the complexity of – Asset leasing module in Microsoft Dynamics 365 Finance. We will focus on lease adjustments and why they matter. Lease adjustments can arise from changes in lease terms, extensions, or other circumstances, and understanding how to navigate them is crucial for financial clarity in Dynamics 365 Finance.
To begin, let’s delve into the logic behind the lease adjustment process. Typically, lease adjustments take place when the terms of a contract are modified.
As a result, this leads to changes in the scope or consideration of the lease. Consequently, we will explore how the system recalculates the present value in response to these adjustments.
Watch as we break down the process:
Microsoft Dynamics 365 Finance Asset leasing Lease adjustment
Calculate the lease adjustment: (Liability carryover – newly calculated present value)
If the new present value increases, debit the Right-of-Use asset and credit the lease liability.
If the new present value decreases, debit the lease liability and credit the Right-Of-Use asset.
In cases where the Right-Of-Use asset decreases below zero, we discuss how surpluses are credited on the lease modification account.
Join us as we simplify the complexities of lease adjustments and equip you with the knowledge to navigate them effectively. In conclusion, for more valuable insights on finance and accounting topics. particularly within Microsoft Dynamics 365 Finance, don’t forget to like, share, and subscribe.
https://learn.microsoft.com/en-us/dynamics365/finance/asset-leasing/adjust-lease
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