Full lease termination
To terminate an activated lease, navigate to More options → Actions → Actions → Terminate Lease.
After pressing the Terminate Lease option, a new window will appear, asking to provide a Termination Date. Select your desired Termination Date and then click OK.
A confirmation message will appear. Select Yes to continue.
Following confirmation, you will be informed that the lease was successfully terminated and moved to the archive.
You can inspect the General Ledger entries created for the terminated lease by navigating to the Archived Leases page through your Role Center or by using the search function.
Select your terminated lease and click the General Ledger (per Lease) button in the Home tab.
The termination creates balancing entries in the G/L on RoU and Lease Liability accounts. The lease is successfully terminated.
RoU and Lease Liability account balances on termination depend on the month in which they were terminated. You can check the amounts by opening the RoU Asset and Lease Liability schedule pages. You can access them through the Lease Agreement Card by clicking Projection - RoU Asset Schedule / Lease Liability schedule.
If a mistake ends up being made in the reversal process, you can see how to Reverse Termination here.
Partial lease termination
SOFT4Lessee supports partial lease terminations. Use this functionality when a lease contract ends (e.g., cancellation, asset return, or early contract expiration) on a date that falls within an open accounting period, and you need the books to reflect interest, depreciation, and payment postings only up to that specific date rather than for the entire period.
You can perform a partial termination using the standard termination action (More Options → Actions → Actions → Terminate Lease). To enable proportional postings up to the selected Termination Date, turn on the Partial Month Posting option.
Optionally, you can enter a Refunded Payment Amount. This field is relevant when lease payments are made less frequently than monthly, and a payment has been made in advance. Enter the amount refunded by the lessor (deducted from the original advance payment). This amount reduces the current Lease Liability and creates an offsetting entry in the A/P Clearing Account. Leave the value at 0 if no refund applies.
Once the process is completed successfully, the lease status changes to Terminated.
The example below shows a partial termination performed in the middle of a month (e.g., June 15, 2026). SOFT4Lessee first posts proportional entries for the partial period (interest, payment, and depreciation) and then posts the lease termination entries. As a result, the lease is successfully terminated while ensuring that all postings for the month are recognized only up to the selected termination date.
