Asset leasing is a way for businesses or individuals to use equipment, property, or other assets without having to buy them outright. Instead of purchasing, the lessee (the person or business using the asset) agrees to pay the lessor (the owner of the asset) regular payments over a fixed period. This method is popular because it helps preserve cash flow, reduces upfront costs, and often includes maintenance or service agreements. Leasing can apply to various assets like vehicles, machinery, office equipment, or real estate.

I. Revalue and adjust assets

To create a lease, navigate to Asset Leasing > Leases > Lease summary. Click on New to create a new lease. Or you can copy the lease from an existing lease.

II. Depreciate assets

After you've finished entering information for the lease, follow these steps to create a lease schedule.

III. Insure assets

IV. Transfer assets

A. Invoice journal -

You can create monthly invoices for individual leases, or you can use a batch process to create them for multiple leases. The following procedure shows how to create an individual lease payment entry when the Pay to Vendor parameter on the Lease book setup page is turned on.

V. Improve assets

Acquisition is the initial phase of the asset life cycle. This phase offers the most options for ways to record the acquisition. You can manage acquisitions by using the Acquisition, Acquisition adjustment, and Transfer from reserve transaction types.

VI. Summary

Asset leasing in Dynamics 365 Finance offers a robust framework for managing lease contracts with accuracy, automation, and compliance. From initial setup to handling complex lease modifications, the module streamlines processes and ensures adherence to global accounting standards. Whether you're just starting or looking to enhance your lease accounting practices, this quick start guide provides the essential tools and insights to get you up and running efficiently. For more detailed steps and best practices, be sure to explore the full documentation on Microsoft Learn here.

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