Lease Agreement Closure

The Lease Closure function is triggered when terminating/closing a lease agreement to correctly write off assets and liabilities, as well as display Revenues and Expenses on the differences that arise in the value of assets and liabilities.

Click the Lease Closure button on the panel of the corresponding leasing object, after which a dialog box with the proposed Closure Date (by default, "Today"), as well as a filter for all Leasing Objects fields for bulk closure of contracts, will appear.

Fill in the dialog box and click OK.

The system will fill in the Actual Leasing End Date field on the Leasing Object Card and create up to 5 lines (depending on the presence of a non-zero balance) to write off:

• accumulated depreciation of the right to use,
• initial cost of the right to use,
• short-term liabilities,
• long-term liabilities,

and display the difference between the asset and the liability on the selected Income or Expense account in accordance with the sign of the difference, as set in the IFRS 16 Settings.

The created journal lines are ready for posting.