Sometimes, you discover that a lease you entered on the system should never have been put on. You may discover that a lease is really a month-to-month lease (perhaps because you can cancel it at any time without penalty), or all the rent is percentage rent, or you mistakenly entered the same lease twice. If you simply delete the lease from the database after running reports that included the lease, your future reports will not balance with those already run.
The solution is to terminate the lease with a Reversal early termination type, dated in the current reporting period. This will cause all previously booked activity to be reversed, so that the life to date effect of the lease is zero, but the beginning balances of your current reports will match the ending balances of the reports previously run. If, for example, you previously booked $100 in depreciation, $150 in capital rent, and $20 in interest expense, the current report will show a $100 credit for depreciation, a $150 debit for rent, and a $20 credit for interest expense, with similar reversing entries in all balance sheet accounts.