If a Fixed Asset needs to be further depreciated after the lease term has passed, you can select Create Fixed Asset on Expiration option in the Lease Card. You can select this option at any point of the lease's lifecycle, just before expiration.
Editable Property
The option to create the Fixed Asset Card becomes editable if Lessee gets Title of Ownership is set to Yes and Lease Category is not one for Fixed Assets (as it would have Fixed Asset Card from the start of the lease).
After selecting this option, post your lease as usual and upon expiration a Fixed Asset Card will be created. Please note that you need to have FA Setup done to use this functionality.
After the lease expires, it will be transferred over to the Archived Leases section with entries closed, there will still be balances on the Fixed Asset side, as it was used to create a new Fixed Asset Card.
In the provided images in this article, the lease term is 4 years and it ends in 2027-12-31. The Economic Life of Lease is set to 10 years, changing depreciation amount each month so it covers the amount over 10 years.
This is what gets transferred over if the depreciation term is longer than the lease term. There are 6 years left on depreciation and the closing balance of the last month on the lease.
