Terminating leases

Before a lease can be terminated, these conditions must be met:

  • Existing sub-leases must be closed.
  • Payments and unposted invoices must be processed.
  • The termination date must occur after the last invoice date.

Upon termination, associated leased assets are updated to Terminated Lease status which ensures the asset is excluded from depreciation and period close processes. Users must verify the asset status after termination.

  1. Select Leases.
  2. On the Options tab, specify this information:
    Termination Option
    Select this check box.
    Reasonably Certain
    Select this option if the lease should end on the specified termination date.
    Early Termination Date
    Specify an end date that is equal to the early termination date. The term and number of months between begin and end dates must not be equal.
    Termination Fee
    Specify an amount.
    Termination Non Lease Component
    Specify the code block component that is set up to post termination fees.
    Termination Gain Loss Account
    Select the code block component to post the gain or loss for the termination.
  3. On the Non-Lease Component tab, specify this information: .
    Non-Lease Component
    Specify the same non-lease component from the Options tab
  4. Open a released lease record.
  5. Click Terminate.
  6. Select a terminate date.
  7. Click OK.
    Note: Verify asset status after terminating.