Lease Termination (LM45.1)

Use Lease Termination (LM45.1) to close leases that have an end date within the current closing period, or to retire leases that are not yet due for closing but that must be terminated early for some reason (for example, a purchase of the leased item). If the lease being terminated has a deferred rent balance or any unposted accrued rent, a journal entry will be created to reduce the accrued rent balance amount to zero, the accrued rent account is debited and the rent expense is credited.

Note: You must process all outstanding invoices for a lease before you can terminate it.

Process at a Glance

  1. Create lease invoices using Invoice Creation (LM131).

  2. (Optional) Adjust invoices using Invoice Adjustment (LM31.1)

  3. (This step) Approve the invoices using Invoice Payment Approval (LM36.1) or Mass Payment Approval (LM136).

  4. Interface the invoices to the Accounts Payable system using AP Interface (LM140).

  5. (Conditional) Calculate interest for capital lease payments, using Interest Calculation (LM180).

  6. Update lease payment balances, using Lease Posting (LM190).

  7. (Conditional - this step) Terminate leases due for closing, using Lease Termination (LM45.1).

  8. Close period, using Period Closing (LM199).

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