> ## Documentation Index
> Fetch the complete documentation index at: https://docs.spacebaseapp.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Terminate accounting lease

> Derecognize the ROU asset and lease liability when the whole lease ends early.

Use this type when the whole lease ends before the original end date. Enter a description, the **Termination date**, and any termination penalty amount and payment date. Choose whether to prorate the final month's entries.

**How Spacebase records the termination.** On the termination date Spacebase derecognizes the ROU asset, accumulated amortization, and the current and non-current lease liability, and books the net difference to lease gain or loss, consistent with ASC 842-20-40-1. A termination payment is booked as a debit to lease gain or loss and a credit to cash. If the termination penalty was already included in the lease payments as a termination option, do not enter it again here.

Date rules:

* The termination date must be after the previous snapshot's effective date and no later than the end of the current calendar month. For a termination that takes effect in a future month, record the shortened term with [**Update existing accounting lease**](/accounting/modifications/update) instead. The remaining term is remeasured as a modification and the derecognition happens when the term ends.
* The termination date must be after the accounting lock date.
* A termination payment date must be on or before the termination date.

If you enable proration and the termination date is mid-month, Spacebase books a prorated entry for the final partial month. If proration is off, no monthly entry is booked for the partial month. If the termination date is a month end, that month's regular entry is kept.

For a lease with a short-term election, the termination payment is booked to lease expense and any deferred rent is cleared to gain or loss.