Hello Steven,

The process is under way to create 2 new depreciation method to deal with the Leased assets question in the 2019.0 version, due out in October if all goes to plan.

~Delray

Due to the impact of the Tax Cuts and Jobs Act of 2017, adding new features for accounting for leased assets under ASC 842, Leases, has been postponed. The implementation of lease accounting features will be re-evaluated later in the year. 

To assist companies affected by certain provisions in the TCJA, the plan is to add two new depreciation methods in the next release of Sage Fixed Assets, which is due out in October 2018. These new methods will allow companies to increase the life of existing assets in accordance with IRS rules for a 'change in use' of property. 

This may be of use as the leased assets can be tracked in the current solution of Sage Fixed Assets Depreciation. Here is a link to the article with the current steps: Leased Assets (GAAP 842).

Certainly. Will do so.

Please keep us up to date on this.  I have to brief my CFO and controller about the new leasing standards this summer, and they will want a plan to get us into compliance.  If I need to find a separate vendor for leased assets, I'll need to start looking soon.

That article prompted my questions.  Tracking is simple, monthly interest expense for each leased item, along with impairments, terminations of lease agreements, extensions of lease agreements, etc, is much more difficult.  

I can create a schedule, but to do it for each lease and keep up with it monthly, including creating the journal entries, is just too much to do manually.  

Have there been any additional updates regarding increased functions around lease accounting?  Can you describe what features Sage is looking to add to Fixed Assets to support the financial reporting side?

An update - A leased asset management module for Sage Fixed Assets is currently not in scope.

Based on our research, a complete leasing system to manage and account for leases under ASC 842 is a full sub-ledger system unto itself. Since the amortization of the right-of-use assets for operating-type leases is closely tied to the amortization of the related lease liability (so that the two jointly result in a straight-line lease expense to the income statement); we recommend exploring a dedicated lease portfolio management solution. Such a system would facilitate management of the lease contracts in addition to providing the accounting features needed for the asset and liability side of leased assets. 

Hi Steven,

Do you have time to talk in more detail about your needs? I'll send you a private message with my contact information.

Thank you. 

You do realize that when we're looking for a platform to hold our Leased Assets and amortize the costs, it will probably also be capable of handling the normal fixed assets as well?  And I wouldn't be able to justify keeping Sage, if the other system can handle both. I'll see what's out there, but I'm hoping that Sage will change its mind.