Does Oracle clear ROU Asset and Accumulated Amortization balances after natural lease expiry?
Summary: When a lease expires naturally in Lease Accounting, the Right-of-Use (ROU) asset and accumulated amortization continue to remain on the balance sheet, even though the net book value is zero.
Content:
Example:
Lease Number 123 expired naturally in March 2026, with no post‑expiration action performed. As a result, the following balances continue to remain in the ledger:
ROU Asset Cost: 8,000
Accumulated Amortization: (8,000)
ROU asset and accumulated amortization balances continue to appear on the balance sheet.
In Oracle Lease Accounting, is it expected behavior for the ROU asset and accumulated amortization balances to remain after a lease expires naturally? Are there any standard or recommended steps or system functionality to clear these balances?