Asset leasing - commencement date in middle of month but reclassification should be on the last day of month

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Posted on by Viktor Kralevski

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Hi all,

Regarding the asset leasing booking, is the following scenario possible - for example:

1. Commencement date is 15.09.2021

2. As a result, on Lease Liability Amortization Schedule form, period start and end dates are respectively 15.09.2021 - 14.10.2021, 15.10.2021 - 14.11.2021 and so on...

3. Again, as a result once the short term reclassification batch is run, the dates on the journal are:

- reclass to short term: 14.10.2021

- reverse to long term 15.10.2021

What should I do to have a commencement date in middle of month, but Lease Liability Amortization Schedule to start and end on the first and last day of month?

If this can't be achieved through user interface, is there a way to edit the reclassification journal - change the dates before posting?

Thanks

Viktor

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Hi Viktor,

I would recommend enabling the Lease Conventions feature to achieve the dates treatment you want: https://docs.microsoft.com/en-us/dynamics365/finance/asset-leasing/asset-leasing-convention

I've written a blog post to explain this new feature and its benefits: https://community.dynamics.com/365/financeandoperations/b/asset-leasing-experts-blog/posts/asset-leasing-feature-review-leasing-conventions

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Viktor Kralevski 139 on at

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Thank you, this did the trick.

Do you have any suggestions how to delete an asset lease which already has few posted journals? (because the client has already posted the initial recognition before activating this feature, I am not sure whether lease adjustment will be able to handle the changes)

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Hi Viktor,

Unfortunately, you are unable to delete a lease once transactions have been posted. You could terminate this lease and create a new lease. Or, you could reverse the transactions posted against this lease in the current period, adjust the lease with the start date of September 15th and see if the system will now accept the Full Month convention after the adjustment. You can then post the historic entries in the current period.

Thanks!

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Viktor Kralevski 139 on at

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Thanks again Brian,

already did what you proposed, luckily only the initial recognition was posted, so with the lease adjustment option the system accepted the full month convention and everything's fine :)

Viktor

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