E.2 Types of Lease Termination
During lease termination, the leased asset can be returned or purchased by paying
the residual amount. Accordingly, lease Termination can be posted in either of the
following ways:
Table E-1 Type of Lease Termination
| Type | Action |
|---|---|
| Termination with buyout | Here, the input Sale Price of asset is compared with Outstanding Bills + Book Residual Value of asset to derive Gain / Loss. |
| Termination without buyout | Here, Outstanding Bills + Book Residual Value is posted to Inventory. |
Note:
During either of the termination types, the inventory balance is not accounted in total of the balances populated in Customer Service > Transaction History > Balances > Current Balance tab. The entry is posted as Current Balance Total (Excluding Inventory).Parent topic: Appendix : Lease Termination / Early Termination