Transforming Lessor Reporting with Dynamics 365 Finance & Operations + Power BI

For global lessors, reporting is more than just a compliance requirement -it’s a strategic capability. Investors, regulators, and executives all expect real-time insights into lease performance, profitability, and funding structures. Traditional spreadsheets and disconnected tools can be replaced with Dynamics 365 Finance & Operations + Power BI.

With Microsoft Dynamics 365 Finance & Operations (F&O) combined with Power BI, lessors can achieve compliance-ready reporting while unlocking deep financial and operational insights.

The Reporting Challenges Lessors Face

Lessor reporting must comply with these questions:

• a. Are lease revenues aligned with IFRS 15 / ASC 606?
• b. How are ROU assets and lease liabilities tracking under IFRS 16 / ASC 842?
• c. Which funding sources are delivering the best ROI?
• d. What’s the profitability per lease, customer, or portfolio?
• e. How are renewals and churn shaping future revenue?

Without automation, finance teams would need manual reconciliations.

Dynamics 365 Finance & Operations + Power BI: The Reporting Engine

Compliance Reporting

• a. F&O Asset Leasing module & Subscription Billing automatically posts Right-of-Use (ROU) assets, lease liabilities, and amortization schedules.
• b. Multibook accounting in F&O ensures GAAP, IFRS, and local tax ledgers are updated simultaneously without duplication.
• c. FX revaluation in F&O handles global contracts with multi-currency exposure.

Power BI dashboard with lease liabilities trend line and revenue recognition chart.

Funding & ROI Transparency

• a. F&O Project Management & Accounting (PMA) links leases to funding layers: equity, debt, and investor capital.
• b. Automated journal entries in F&O calculate interest expense, drawdowns, and investor returns.
• c. ROI per funding tranche is visible and reportable in real-time through Power BI.

Stacked bar chart showing funding mix with KPI cards for ROI by source.

Billing & Revenue Recognition

• a. Subscription Billing in F&O automates recurring rental invoices and supports escalation rules.
• b. Logic Apps + IoT integrate to capture usage-based billing for variable revenue models.
• c. Built-in Revenue Deferral functionality aligns postings with IFRS 15 and ASC 606.

Column chart comparing recurring vs usage-based revenue streams.

Profitability Analysis

• a. In F&O PMA, each lease is treated as a project, capturing direct costs, maintenance, insurance, and service activity.
• b. Profitability dashboards in Power BI highlight high-margin vs low-margin contracts.
• c. F&O’s cost journals and time & expense integration provide accurate profitability at the customer and portfolio level.

Heatmap of profitability by customer with KPI margin %.

Renewal & Churn Insights

• a. F&O Sales Pro integration tracks opportunities, renewals, and contract expirations.
• b. Lease maturity schedules are managed in Asset Leasing, giving real-time renewal visibility.
• c. Power BI forecasts churn trends and renewal probabilities by customer segment.

To conclude, with Dynamics 365 F&O and Power BI, lessors achieve:

• a. Audit-Ready Compliance: Automated IFRS/ASC postings
• b. Investor Transparency: ROI dashboards across funding layers
• c. Strategic Decision-Making: Profitability and churn insights by contract
• d. Global Scale: Consistent reporting across geographies

Reporting is no longer a back-office activity. With Dynamics 365 Finance & Operations and Power BI, lessors can transform reporting into a strategic driver – ensuring compliance while delivering actionable insights that improve investor confidence and portfolio profitability.

We hope you found this blog useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfonts.com