Microsoft Dynamics Software Allows Companies to Meet New Lease Accounting Standards

Lease accounting and Microsoft Dynamics summit key takeaways

This webinar covers the highlights of the D365/AXUG Summit and offers examples of how new software solutions can help companies meet the new industry standards that were detailed throughout the event.

  • Microsoft will continue to develop Dynamics 365 as part of its Systems of Intelligence long-term strategy.
  • Microsoft Dynamics 365 has made changes to the cloud platform to help companies meet new lease accounting standards.
  • Crowe Lease Accounting Optimizer (formally Crowe Leased Asset Calculator) provides the tools necessary to streamline lease accounting.

The focus on Microsoft Dynamics 365 software and the Systems of Intelligence

Throughout the course of the summit, it was very clear that Microsoft plans to make the Dynamics 365 software a core part of their long-term strategy. This focus makes sense given Microsoft’s push to become a larger player in the cloud solutions industry. Of the roughly 6,600 attendees present at the summit, 2,100 reported being Dynamics 365 users. So, naturally, this is a space where Microsoft wants to continue to grow and develop in the coming years.

Mobile first, cloud, and guided analytics come together to form part of Microsoft’s long-term vision and strategy known as Systems of Intelligence. Microsoft’s Systems of Intelligence infuses big data with artificial intelligence, mixed reality, and the Internet of Things to provide a smart, continually learning solution that enables companies streamline processes and solve problems more efficiently.

Changes to Microsoft Dynamics infrastructure

Mike Grob, Senior Manager – Performance Consulting at Crowe explains recent changes to the infrastructure in the cloud platform of Microsoft Dynamics 365, specifically pertaining to finance and operations functions. The new features that have been included enable more tasks to be automated. Streamlined processes within Microsoft Dynamics 365 allows companies to reallocate its resources and manpower to other tasks rather than having to rely on slow manual data entry.

Microsoft has acknowledged that while cloud storage is an ideal solution for many companies, it isn’t an option for every company. That’s why they are working to create a cloud and on-premise hybrid solution that would allow users to access information on the cloud, anytime and anywhere, as well as keeping information on-site when needed.

There are two paths to upgrading Microsoft Dynamics 365 software depending on the version a company is currently running. For those companies still running the 2009 version, the upgrade path is all about migrating data that is not transactional. This update allows companies to move all master data, including products and history, to the latest Dynamics 365 instance. In contrast, the 2012 update is more of a robust upgrade. Companies can take their full database of transactions and customizations and convert the code into a format that is compatible with the current Dynamics 365 software. Microsoft provides an easy-to-use upgrade wizard, along with an assortment of other tools, to help companies make their upgrade as simple as possible.

New lease accounting standards and the Crowe Lease Accounting Optimizer

New lease accounting standards are set to come into effect both internationally and domestically (IFRS 16 and ASC 842 respectively). The new lease accounting standards will require companies to record operating leases on their balance sheets, which was not previously the case. The new guidelines are expected to account for an additional $2.1 trillion in operating leases to hit company balance sheets.

The goal of the Microsoft Dynamics 365 updates is to make it easier for companies to make their own process upgrades to meet the changing industry lease accounting standards. That meant creating a solution that makes it simpler for accounting departments to review all of its company’s contracts to identify leases to calculate new balances under the updated lease accounting standard. Luis Lopez demonstrates the Crowe software solution.

The Crowe Lease Accounting Optimizer is fully integrated within the ERP system, making it available on AX 12 and Dynamics 365. Because the tool is fully integrated, companies can input vendor information, account charts, number sequences, and journal names rather than losing that information when switching to an entirely new software setup. Throughout the demo, Louise shows how the tool allows for more tasks to become automated, how information is easily transferred, and how leases can be managed with less effort while meeting new industry standards.

To see more about the Crowe Lease Accounting Optimizer and to learn how these tools and resources can help your company meet new lease accounting standards, contact Crowe today.