Expense Lease Disclosure Inquiry

Modules > Property Lease Management > Inquiries and reports > Expense lease disclosure inquiry

Use this page to print the detailed and summary disclosure reports. The disclosure reports for operating and financial leases are generated separately and amounts for each report are calculated separately.

For leases to appear in the inquiry, the following conditions must be satisfied: 

• The lease start date must be within the specified date range
• The initial journal entry must be created and posted

In addition to the standard Microsoft Dynamics 365 for Finance and Operations filter criteria, you can apply the following Property Lease Management filters to show only the records that you want to see in the inquiry list.

ROU Asset Net Book Value Calculation

For expense leases that use the ASC 842 accounting standard, this calculation is for the ROU asset balance. For financial expense leases that use the IFRS 16 accounting standard, this calculation is for the ROU asset net book value.

• Takes the sum balance for all periods between the specified dates (January 1, 2018, and December 31, 2018).
• Takes the sum total from the first point for all charges of a lease.
• Takes the sum total result from the second point for multiple leases.

All other balances are calculated in a similar way to the ROU asset net book value (or ROU asset balance).

ROU Asset Accumulated Amortization Amount Calculation

The ROU asset accumulated amortization amount is for financial expense leases that use the IFRS 16 accounting standard and is calculated as follows:

• Takes the as of balance for ROU Asset balance, Lease Liability Balance & ROU Asset Accumulated Amortization Amount for a single lease charge.
• Takes the sum total from the first point for all charges of a lease.
• Takes the sum total result from the second point for multiple leases.

Weighted Average Balance Calculation

The balances for weighted average are calculated as the weighted average for all selected leases. When amounts for the weighted average are calculated, remember the following: 

• Amounts for operating and financial leases are included in calculations separately.
• Based on the specified dates for the report, leases appear in the inquiry list and on the report only if the initial journal entry has been created and posted.
• The balances that appear on the report represent the true balances (posted amounts) of the leases, not the values from amortization.

For more information, review the examples.

Weighted Average Remaining Terms - Reporting Date December 31, 2032

The weighted average remaining terms is calculated as follows: 

For Lease A, B, and C, the weighted average remaining terms is as follows: 

Weighted Averages Calculation Table

Leased Asset	Charge	Operating Lease Liability as of December 31, 2032	Weighted Percentage (Lease liability/Total Lease Liability)	Months Remaining on the Lease	Weighted Average Remaining Lease Term (% x months remaining)
Lease A	Charge A	11,051,984	38.89%	32	12.45 (32*38.89%)
Lease B	Charge B	6,097,178	21.45%	54	11.58 (54*21.45%)
Lease B	Charge C	4,064,785	14.31%	54	7.72 (54*14.31%)
Lease C	Charge D	7,198,709	25.35%	29	7.35 (29*25.35%)
Total		28,412,709	100.00%		39.11

For Lease D, E, and F, the weighted average remaining terms is as follows: 

Weighted Average Remaining Terms Table

Leased Asset	Charge	Operating Lease Liability as of December 31, 2032	Weighted Percentage (Lease liability/Total Lease Liability)	Months Remaining on the Lease	Weighted Average Remaining Lease Term (% x months remaining)
Lease D	Charge A	23,623,734	9.76%	62	6.05 (62*9.76%)
Lease E	Charge B	198,306,083	81.93%	53	43.42 (53*81.93%)
Lease F	Charge C	20,124,190	8.31%	55	4.57 (55*8.31%)
Total		242,054,007	100.00%	170	54.04

Weighted Average Remaining Terms - Two Scenarios

A lease with a start date from January 01, 2019 to December 31, 2021 has a Monthly frequency, and all invoices up to December 31, 2019 have been posted (indicated by asterisk (*) in table).

Weighted Averages Remaining Terms Table

Period		Amount		PV	Lease Liability Carrying Amt	Interest Paid (Component)	Interest Expense	Amortization Component	Lease Expense	Lease Liability Balance	ROU Asset Balance
0*	January 01, 2019	500.00		500.00		-	100.98	537.91	638.89	20,296.89	20,158.00
1*	February 01, 2019	500.00		497.51		100.98	98.98	539.90	638.89	19,895.87	19,618.10
2*	March 01, 2019	500.00		495.04		98.98	96.98	541.91	638.89	19,492.85	19,076.19
3*	April 01, 2019	500.00		492.57		96.98	94.96	543.92	638.89	19,087.82	18,532.26
4*	May 01, 2019	500.00		490.12		94.96	92.94	545.95	638.89	18,680.76	17,986.31
5*	June 01, 2019	500.00		487.69		92.94	90.90	547.99	638.89	18,271.66	17,438.33
6*	July 01, 2019	500.00		485.26		90.90	88.86	550.03	638.89	17,860.52	16,888.30
7*	August 01, 2019	500.00		482.84		88.86	86.80	552.09	638.89	17,447.32	16,336.21
8*	September 01, 2019	500.00		480.44		86.80	84.74	554.15	638.89	17,032.06	15,782.06
9*	October 01, 2019	500.00		478.05		84.74	82.66	556.23	638.89	16,614.72	15,225.83
10*	November 01, 2019	500.00		475.67		82.66	80.57	558.32	638.89	16,195.29	14,667.51
11*	December 01, 2019	500.00		473.31		80.57	78.48	560.41	638.89	15,773.77	14,107.10
12	January 01, 2020	500.00		470.95		78.48	76.37	562.52	638.89	15,350.14	13,544.58
13	February 01, 2020	500.00		468.61		76.37	74.25	564.64	638.89	14,924.39	12,979.94
14	March 01, 2020	500.00		466.28		74.25	72.12	566.77	638.89	14,496.51	12,413.18
15	April 01, 2020	500.00		463.96		72.12	69.98	568.91	638.89	14,066.49	11,844.27
16	May 01, 2020	500.00		461.65		69.98	67.83	571.06	638.89	13,634.33	11,273.21
17	June 01, 2020	500.00		459.35		67.83	65.67	573.22	638.89	13,200.00	10,700.00
18	July 01, 2020	500.00		457.07		65.67	63.50	575.39	638.89	12,763.50	10,124.61
19	August 01, 2020	500.00		454.79		63.50	61.32	577.57	638.89	12,324.81	9,547.04
20	September 01, 2020	500.00		452.53		61.32	59.12	579.76	638.89	11,883.94	8,967.27
21	October 01, 2020	500.00		450.28		59.12	56.92	581.97	638.89	11,440.86	8,385.30
22	November 01, 2020	500.00		448.04		56.92	54.70	584.18	638.89	10,995.56	7,801.12
23	December 01, 2020	500.00		445.81		54.70	52.48	586.41	638.89	10,548.04	7,214.71

Scenario A: The disclosure report is run for the date June 30, 2019. The Lease Liability Balance up to June 30, 2019 (18,271.66) is considered. The non-weighted average remaining terms for the lease would be 30 (July 2019 to December 2021).

Scenario B: The disclosure report is run for the date March 31, 2020. Since the invoices from January 2020 to February 2020 have not been posted, the Lease Liability Balance up to December 31, 2021 (15,773.77) is considered. The non-weighted average remaining terms for the lease would be 27 (January 2020 to December 2021).

Weighted Average Discount Rate - Reporting Date December 31, 2026

The weighted average discount rate is calculated as follows: 

For the weighted average discount rate calculations, remember the following:

• Calculations for operating leases are separate from calculations for financial leases.
• The lease payment is the Amount column. These payments have been posted.
  You can check whether a payment is posted on the Expense Lease - Charge Details window. The Invoiced check box indicates whether the invoice for the period has been created. When a payment is considered posted, the Invoiced check box must be selected, the voucher number must exist, and the journal number must be available. Lines that have the Invoiced check box selected can have a voucher number and not be posted.

Lease A, B, and C are operating leases. Lease D and E are financial leases. All lines below 2026 are outstanding (not paid) on the lease.

Weighted Averages Discount Rate Table

	Lease A	Lease B	Lease B	Lease C	Total	Lease D	Lease E	Total
	Charge A	Charge B	Charge C	Charge D		Charge A	Charge B
Discount rate at commencement	5.2%	5.6%		9.6%		5.7%	5.4%
2022				1,000
2023	35,230			2,000		11,023,603
2024	35,230			3,000		11,244.075
2025	35,230	23,923		4,000		11,468,957	805,000
2026	35,230	9,760	14,640	5,000		11,698,336	805,000
2027	35,230	9,569	14,356	6,000		11,932,302	805,000
2028	35,230	9,761	14,641	7,000		12,170,948	805,000
2029	35,230	9,570	14,355	8,000		12,414,367	805,000
2030		9,761	14,642	9,000		12,662,655	805,000
2031		9,572	14,355	10,000		12,915,908	805,000
2032		9,762	14,643				805,000
Remaining balance of lease payments as of reporting date	105,690 36% (105690/290676)	57,995 20% (57995/290676)	86,991 30% (57995/290676)	40,000 14% (40000/290676)	290,676	62,096,181 93% (62096081/66926181)	4,830,000 7% (4830000/66926181)	66,926,181
Weighted Average Discount Rate	1.9% (5.2*36%)	1.12% (5.6*20%)	1.68% (5.6*30%)	1.3% (9.6*14%)	6%	5.3% (5.7 *93%)	0.38% (5.4 *7%)	5.68%

Consider Lease A. After 2026, the lease has three years remaining (until 2029). Lease B ends in 2032, and Lease C ends in 2031. The remaining payments are added and then divided by the sum of all leases in the report for the reporting date.

• The sum of the remaining lease years (2027, 2028, and 2029) for the lease is calculated as follows: 
  35,230 + 35,230 +35,230 = 105,690
• The sum of the remaining lease years for all operating leases (Leases A, B, and C) is calculated as follows:
  105,690 + 57,995 + 86,991 + 40,000 = 290,676
• The remaining balance percent for a lease is the sum of the remaining lease years for the lease divided by the sum of the remaining lease years for all operating leases:
  105,690/290,676 = 36%
• The lease discount rate is 5.2%. the weighted average discount rate is the percent (36%) multiplied by the lease discount rate (5.2%):
  36% x 5.2% = 1.9%

Fields

The following field boxes are available: 

Field	Description
Classification	Select the classification for the expense lease. Financial Lease: Includes all financial (or capital) leases in the inquiry and report. Operating Lease:  Includes all operating leases in the inquiry and report. Both:  Includes both financial and operating leases in the inquiry and report.
Category name	Select the category for the records that you want to appear on the inquiry list or report.
Vendor account	Specify the account number you want to appear in the report or inquiry. When the value is empty, all account numbers appears in the report or inquiry.
Lease group ID	Specify the lease group id used by leases. When lease group ID is empty all leases will be shown, when a value is provided , only the leases that use the specified lease group id will be shown.
Lease status	Select the status of the leases that you want to appear in the inquiry list or report:  Active: Only leases with the Active status appear in the inquiry list or report. All: Leases with any status appear in the inquiry list or report. Draft: Only leases with the Draft status appear in the inquiry list or report. On hold: Only leases with the On hold status appear in the inquiry list or report. Canceled: Only leases with the Canceled status appear in the inquiry list or report. Archived: Only leases with the Archived status appear in the inquiry list or report. Terminated: Only leases with the Terminated status appear in the inquiry list or report.
Lease number	Specify the lease number you want to appear in the report or inquiry. When the value is empty, all lease numbers appear in the report or inquiry.
Charge number	Select the charge number that you want to appear on the report or inquiry.
From/To date	Specify the date range for the report.
Compare to	This option is available for the summary report only. Yes: Prints the data for comparison of the specified date range with the specified comparison date range. No: No comparison data is printed on the summary report.
From/To date	Specify a date range for a second summary disclosure report. This second report can be used for comparison with the current summary disclosure report. This date range is available only when Compare to is selected. When the comparison is used, a second summary disclosure report appears below the current summary disclosure report.
Lease disclosure detail list	The upper list is the detailed disclosure inquiry with the following information. To print a report version of the inquiry, select the corresponding action. Category name Classification Lease number and name Discount rate Currency Level 1, 2, or 3 numbers Charge number Amortization component and expense Interest expense Lease expense Lease liability values: beginning balance, and ending (or current) balance ROU asset values:  adjustment, accumulative amortization, net book value, beginning balance, and ending (or current) balance Variable rent expense Maturity date Remaining term Weighted average values: remaining terms and discount rate percent
Lease disclosure summary list	The lower list is the summary disclosure inquiry with the following information. To print a report version of the inquiry, select the corresponding action. Currency Discount rate Lease incentives Initial direct cost Purchasing options Residual amount ROU asset values: balance, adjustment, accumulative amortization, and net book value Variable rent expense Amortization component and expense Lease expense Lease liability balance Remaining term Weighted average values: remaining terms and discount rate percent