Handle Lease Termination Manually

Explanation

This activity is used to terminate the lease contract or acquire lease asset by using a manual process.

This can be performed by creating Manual Vouchers to clear the balances on lease liability, right-of-use asset and to post the appropriate postings on termination lease contract or acquire lease asset. You can query for the balances as of the date which you intend to terminate lease contract or acquire lease asset on Lease Accounting Balance Analysis page.

You may change the status of lease contract on Lease Accounting Contract page to closed if required.

 You may use Scrap functionality to clear the acquisition and accumulated depreciation values from the FA object (Right-of-use Asset), if the leasing type is Finance Lease.

Prerequisites

In order to terminate lease contract or acquire lease asset through a manual process, the following must have been completed:

• A fixed asset object of type Right-of-use must have been connected to the lease contract.
• Status of the Lease Contract should be in the status Active.
• Lease Periodical Accounting proposals must have been created and posted for the required accounting period(s) until the Termination Date.
• Lease Payable Accounting proposals must have been created and posted for the installment(s) due until the Termination Date.
• If the Leasing Type of the contract is Finance, depreciation proposals must have been created and posted for the required accounting period(s) until the Termination Date.

Pages

Lease Accounting Contract
Lease Accounting Contracts

Activity Diagrams

Terminate Lease Contract