Asset leasing - lease expires - derecognize ROU asset and Lia

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Posted on by Caro_Smart

Hi community,

We have leases that have run their course and will expire this month.

I have been able to post the payment schedule entry and the asset dep schedule entry but when I go to the lease liability amort schedule, the 'create journal' button is greyed out (snip pasted).

Why would this happen and how do I post the final lease lia amort entry?

Once posted, I will have a debit ROU asset balance and a corresponding credit in ROU accum dep. How do I end the lease within the module? Is it lease termination? Move book to closed? What are the steps for normal derecognition when a lease has run its course?

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IvyYY 171 on at

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Asset leasing - lease expires - derecognize ROU asset and Lia

This is because your Annuity type is "Annuity due", which means payment in advance in each period.

There's no need to create another journal. If you check "Lease liability transactions" screen, the net amount should be zero.