We are using dismantling costs as the method to add the provision for make good liability calculated outside of D365 to the lease asset under IFRS 16. While this correctly adjusts the right of use asset value and associated depreciation, the initial recognition journal posts the dismantling costs as if they are a payment (either to the vendor account specified on the lease or to the GL account configured for payments in asset leasing parameters).

In reality, these dismantling costs would ordinarily usually sit in a separate provision for make good liability account over the period of the lease.

If a main account could be added for posting type dismantling costs in the asset leasing parameters, this would allow IFRS 16 lease make good liabilities to be posted to a dedicated GL account on initial recognition.