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# Contract Ending
Lease schedules can end either at the natural end of the lease term or before the contractual end date through an early termination process. The ASC 842 solution supports both scenarios and provides dedicated functions for processing the related accounting entries.
## Natural Ending
When accounting transactions have been posted for the final schedule line and both the lease liability and ROU Asset have been fully amortized, the system automatically changes the schedule status to **Expired**.
This status indicates that:
* The lease liability balance has reached zero.
* The lease schedule has reached the end of its lifecycle.
* No further periodic accounting transactions are required.
### Disposing of the ROU Asset
After a schedule has expired, the related ROU Asset must be disposed of.
To complete this process, use the **Expired Schedule ROU Asset Disposal** batch function.
The function can be run for:
* A specific schedule.
* All expired schedules.
If no specific schedule is selected, the system automatically identifies schedules that meet the required criteria.
#### Disposal Criteria
The schedule must meet the following conditions:
* **Schedule Status = Expired**
* Outstanding lease liability balance equals zero.
#### Disposal Posting Date
The disposal can be posted using:
* The latest posting date available.
* A manually specified posting date entered in the batch parameters.
### Disposal Results
After the batch has been processed:
* The ROU Asset disposal is posted.
* General Ledger entries are created.
* A confirmation message is displayed showing the processing results.
Schedules that cannot be processed are recorded in **ROU Assets Batch Disposal Status Review**, allowing users to investigate and resolve issues.
## Early Termination
If a lease schedule needs to be closed before the contractual end date, use the **Post Early Termination** function.
### Processing an Early Termination
When the function is initiated, the system displays a summary of the lease schedule, including the remaining balances. Users can:
* Review outstanding balances.
* Specify the disposal posting date.
* Select the termination type.
#### Termination Types
Two termination statuses are available:
* **Early Buy-Out -** Select this option when the leased asset is acquired before the end of the lease term.
* **Terminated -** Select this option when the lease agreement is ended before the contractual end date without acquiring the asset.
### Accounting Treatment
The accounting entries generated by the system are identical for both termination types.
The only difference is the final schedule status assigned to the lease schedule:
* **Early Buy-Out**
* **Terminated**
### Termination Results
During early termination, the system:
* Disposes of the ROU Asset.
* Fully amortizes the remaining lease liability balance.
* Calculates the difference between the remaining ROU Asset carrying value and the outstanding lease liability balance.
* Posts the resulting amount as either a gain or a loss.
