Terminate a Lease

This example demonstrates how to terminate a lease from the Manage Leases page.

Navigate to the Manage Leases page.
Click the Leases tab.
From the Actions menu, click Terminate.
On the Terminate Lease page, click the Recurring Payments tab.
Enter a Termination Date for all active periodic lease payment rows. The date must fall in the current open period.
Select the Period End Liability option to indicate that the termination is effective from the start end of the period.
On the One Time Payments tab, select Termination payment in the Payment Type column.
Enter the amount of the termination penalty.
Click Generate Schedules to calculate the new lease liability.

Verify Lease Termination

Verify the following values on the Review Termination page:

Field	Description
Cost	Current cost of the associated leased assets.
Liability	Lease liability at the start of the period.
Net Book Value	Net book value of the leased asset.
New Cost	Cost of the associated leased assets after the termination.
New Liability	Principal reduction portion in the current period lease payments.
Gain or Loss	Difference between the book value of the asset and the change in liability (liability minus the new liability).

If any of the values are incorrect on the Review Termination page, update the termination transaction with the correct values.
Click Generate Schedules to regenerate the amortization schedule.
Repeat the steps for Verifying a Lease Termination.

Navigate to the Assets page.
Click the Retirements infotile.
Click Transactions.
Review the retirement transaction.
If the information for the retirement transaction is correct, click Submit to post the retirement transaction.