E.4 Processing Lease Termination
On posting Lease termination transaction either before or after maturity
date, following actions are performed by the system on the lease account:
- Amount Due is tracked separately after termination also and independent of termination transaction.
- In Due Date History, the Payment Received flag is updated to Y (Irrespective payment received or not).
- Rent/ Interest continues to accrue after posting of termination for Interest Bearing Lease.
- Statement generation is stopped after termination.
- Payoff Quote posting is not supported after account is terminated.
- Current Balances on account is moved to Terminate Balances. While moving the balances, system Terminates all individual balances and any outstanding dues (Lease Receivables, Rent, Fee and so on) would be tracked against the consolidated balance called Termination Balance.
- While posting termination transaction, system allows to post any fee
(considering the Asset wear and tear) and the same is tracked as separate
balance(s) under Terminate bucket (Radio button).
For example, on posting a fee (Early Termination Fee of 120$) while posting termination, on effective termination the balances radio button will have Termination balance and Early TerminationFee balance as outstanding payable.
Parent topic: Appendix : Lease Termination / Early Termination