> For the complete documentation index, see [llms.txt](https://learn.tryonederful.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://learn.tryonederful.com/asc-842/setup-documentation.md).
# Setup Documentation
This document provides guidance on setting up the ASC 842 solution in Microsoft Dynamics 365 Business Central.
All setup steps described in this document must be completed before users can start working with lease contracts and schedules in the ASC 842 solution.
## User Setup
Two additional fields are available in the standard **User Setup** page. Appropriate permissions must be assigned to users based on their responsibilities:
* ASC 842 Allow Create Lease Schedule
* ASC 842 Allow Confirm Lease Schedule
### ASC 842 Allow Create Lease Schedule
Users with this permission can:
* Create lease schedules.
* Create a new schedule version based on an existing version.
* Clone lease schedules.
### ASC 842 Allow Confirm Lease Schedule
Users with this permission can:
* Confirm lease schedules.
* Post early lease terminations.
* Clone lease schedules.
## ASC 842 Role
Users working with the ASC 842 solution should be assigned the **CLT ASC** role.
## ASC 842 Setup
Before entering lease contracts into the system, complete the **ASC 842 Setup** page.
#### General
* **Contract Number Nos.** - Specifies the number series used for ASC 842 contract numbering.
* **Schedule No. Separator Symbol** - Defines the separator used in schedule numbering.
**Example:** If the separator symbol is "-", the schedule number for contract **ASCCN\_00021** will be **ASCCN\_00021-01**.
* **Use in This Company** - Enables the ASC 842 solution for the current company.
* **Business Unit Mandatory** - When enabled, a Business Unit Code must be assigned to each lease schedule.
* **Pay on Period Start** - Defines the default lease payment timing. When enabled, lease payments are assumed to be made at the beginning of the period. As a result:
* The interest amount on the first schedule line is calculated from **Outstanding Amount - Payment**.
* The interest amount on the final schedule line equals **0**.
* **Last Payment Fine Tune** - Defines the default calculation logic applied to the final schedule line.
* **Default Journal Template** - Specifies the journal template used by default when posting ASC 842 transactions.
#### Dimensions
* **Schedule No. Dimension Code** - Specifies the dimension code dedicated to ASC 842 transactions.
* **Create Schedule Dimension** - When enabled, the system automatically creates and assigns ASC 842 dimension values to transactions generated by the solution.
* **Filter Lookup by Global Dimensions** - When enabled, the system applies Global Dimension filters when creating purchase invoices.
#### ROU Asset
* **Posting Type for ROU Asset Acquisition** - Specifies the posting type used when recognizing the initial Right-of-Use (ROU) Asset.
* **Posting Type for ROU Asset Value Increase** - Specifies the posting type used when increasing the value of an ROU Asset, typically during a lease amendment.
* **Posting Type for ROU Asset Value Decrease** - Specifies the posting type used when decreasing the value of an ROU Asset, typically during a lease amendment.
#### Short-Term Liability
* **Short & Long Term** - Determines whether lease liabilities are split between short-term and long-term portions.
* **Short-Term Liabilities Period** - Specifies the period used to classify liabilities as short-term.
## Posting Groups
Posting groups determine which General Ledger accounts are used when posting ASC 842 transactions.
The accounts used depend on the selected lease type:
* Finance Lease
* Operating Lease
## Demo Data Creation
The ASC 842 solution includes functionality for generating demo data for testing and evaluation purposes.
{% hint style="info" %}
**Recommendation:** Create demo data only in a Sandbox environment.
{% endhint %}
To generate demo data, open **ASC 842 Setup** and select **Create DEMO Data**.
