What is reserve account in SAP FI-AA-ALC - SAP Asset Lifecycle Accounting for Utilities?

SAP Term: reserve account

• Component: FI-AA-ALC

• Component Name: SAP Asset Lifecycle Accounting for Utilities

• Description: An account to which all accumulated depreciation, retirements, removals RWIP, salvage, and other miscellaneous postings must be recorded.

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• Key Concepts: 
  A reserve account is a type of asset account in SAP Asset Lifecycle Accounting for Utilities (FI-AA-ALC). It is used to store the value of assets that are not yet in use, such as those that are in the process of being acquired or constructed. The reserve account is used to track the value of these assets until they are ready to be put into service. 
  
  How to Use it: 
  In SAP Asset Lifecycle Accounting for Utilities, reserve accounts are created and managed in the Asset Accounting module. When an asset is acquired or constructed, its value is recorded in the reserve account. As the asset is put into service, its value is transferred from the reserve account to the asset master record. 
  
  Tips & Tricks: 
  When creating a reserve account, it is important to ensure that it is properly linked to the asset master record. This will ensure that when the asset is put into service, its value can be easily transferred from the reserve account to the asset master record. 
  
  Related Information: 
  For more information on how to create and manage reserve accounts in SAP Asset Lifecycle Accounting for Utilities, please refer to the official SAP documentation.