The following changes take place when you create a Revenue recognition of reservesproposal for a fixed asset journal line.

• If the fixed asset has not yet expired–the ownership period has not exceeded the number of months indicated in Monthsin the Provision types form, a transaction with only an offset account is suggested. Instead of entering a ledger account, you can enter the number of the new fixed asset that has replaced the old one. The value of the new fixed asset is reduced by the reserve amount from the sale of the old asset.

• If the fixed asset being sold has expired–the ownership period has exceeded the Monthsvalue–the option to post the reserve amount to the account set up as Account for revenue recognition of untransferred reservesin the Parameters form suggested.

All suggested accounts are default accounts and can be changed prior to posting.

To print a report that displays existing and dissolved reserves, click General ledger> Reports> Transactions> Fixed asset> Fixed asset reserve transactions.