The new FASB’s accounting standard for Leases (Topic 842), will have an impact on all companies across all industries that have leased real estate, equipment, automobiles, industry-specific items. Thus, your accounting procedures and software should be updated to comply with the new standard. The new lessee accounting requires significant judgments at lease commencement and reassessments during the lease term. Accounting for Operating leases become more complex, as you must capitalize the lease liability and right-of-use asset on your balance sheet, and then account for interest on the lease liability and right-of-use asset depreciation. However, the operating lease expenses stay straight-line.

The transition to new ASC 842 standard may be a big challenge for companies with hundreds of leases – capture leases in a structured way and ensure you have all the data that is needed for extensive ASC 842 disclosure requirements. Soft4Lessee is here to help – Add-on for Dynamics 365 Business Central with built-in transition procedures, lease data management features and finally – reporting under ASC 842. Take advantage of ready data templates, pre-configured G/L accounts, high level of process automation and professional consultancy services from certified lease accounting experts.

Soft4Lessee will help you:

• Capture lease data in excel template or over API, and then validate the data for completeness and consistency
• Facilitate lease classification - Operating Lease vs Finance Lease - using clear questionnaire
• Manage lessee’s incremental borrowing rates (IBR)
• Simulate the transition to ASC 842 using either Effective Date method or Comparative method and estimate the impact on your balances sheet
• Produce G/L Journal on the actual transition
• Calculate complete projections of the lease liability and right-of-use asset measurements and cash flows
• Get ready figures for your balance sheet, income statement and statement of cash flows
• Get ready Lease Liability report, Right-of-use asset report, Maturity analysis report, weighted averages report for disclosures required by ASC 842
• Manage lease modifications and re-assessments
• Manage lease renewals, expirations, and terminations
• Seamlessly Integrate with other systems for lease data input and G/L output (monthly journal for leases)

Contact us at https://soft4lessee.com and explore how Soft4Lessee solution can help you prepare for the change.

Supported editions:

This app supports both the Essential and Premium editions of Microsoft Dynamics 365 Business Central.

Supported countries:

United States, Australia, New Zealand, United Kingdom, Indonesia, Malaysia, Singapore, South Africa, Thailand, United Arab Emirates.