Handle Lease Termination Manually

Explanation

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

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.

System Effects

N/A

Window

Lease Accounting Contract
Lease Accounting Contracts

Related Window Descriptions

Lease Accounting Balance Analysis
Voucher Entry
Lease Accounting Contract
Lease Accounting Contracts

Procedure

Use the following procedure to handle terminate lease contract or acquire lease asset manually:

1. Open the Lease Accounting Contract window or Lease Accounting Contracts window  and search for the lease contract of which you want to terminate lease contract or acquire the lease asset.
2. Select the right mouse button option Status to set the status of the lease contract to Closed. This is required only if you are planning to use Scrap functionality in step 4. If not, this step can be performed as the last step.
3. Go to the Lease Accounting Balance Analysis window and query for the balances as of the date on which you intend to terminate lease contract or acquire lease asset.
4. Create a Manual Voucher 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.

Note: 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.