Terminating a Lessee Lease Early

To run the early termination process on a leased asset:

1. From the Balance Sheet Lessee Accounting menu (G15201), select Amortization Schedules.

2. On the Work With Amortization Schedules form, search for the leased asset whose lease you want to terminate early.

3. Review the Recalculate Lease Liability field, which must contain a 2 (Terminate or remeasure).

4. Select the row you want to terminate, and then select Terminate Early from the Row menu.

5. Specify the Early Termination G/L Date and Exchange Rate Method fields in the Early Termination Options dialog box and click OK.

6. The system runs the early termination process, which includes creating a batch of termination journal entries, updating the amortization schedule with the journal batch information and to identify the termination period, and resetting the Recalculate Lease Liability field to 0 (No action required).

7. You can now review, approve, and post your termination journal entries. See Reviewing, Approving and Posting Lease Commencement Journal Entries for instructions.