What is capitalization reserves in SAP FIN-FSCM-TRM-TM - Transaction Manager?

SAP Term: capitalization reserves

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: Reserves created by posting capital gains and losses from the sale of securities to an asset account instead of to a profit and loss account.

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• Key Concepts: 
  Capitalization reserves are a type of reserve that is created when a company capitalizes an asset. This reserve is used to cover the cost of the asset over its useful life. The capitalization reserve is created in the SAP Transaction Manager (TM) component of the Financial Supply Chain Management (FSCM) module. 
  
  How to use it: 
  In order to create a capitalization reserve, the user must first create an asset in the Asset Accounting (FI-AA) component of the Financial Accounting (FI) module. Once the asset is created, the user can then create a capitalization reserve in TM. The user must enter the asset number, the amount of the reserve, and any other relevant information. 
  
  Tips & Tricks: 
  When creating a capitalization reserve, it is important to ensure that all relevant information is entered correctly. This will ensure that the reserve is properly accounted for and that it can be used to cover the cost of the asset over its useful life. 
  
  Related Information: 
  Capitalization reserves are closely related to depreciation reserves, which are also created in TM. Depreciation reserves are used to cover the cost of an asset over its useful life, but they are not created when an asset is capitalized.