When you post to Asset Accounting, the system initially creates asset line items only (with no posting documents). The actual posting of transferred reserves in Financial Accounting takes place automatically with the periodic running of the depreciation posting run. If you actively reduce the depreciation base in depreciation area 01, the posting will be a debit to the offsetting account for transfer of reserves and a credit to the value adjustment account for the transfer of reserves.

The legal restrictions in many countries forbid you (particularly when the allocation and the transfer take place in the same fiscal year) to balance out the revenue from the writing off of the allocated reserves and the expense from the transfer of the reserves to an asset. Therefore, you should not use the balance sheet account for allocated (transferable) reserves as the offsetting account for transferring reserves. This would correspond to a pure transfer within the balance sheet special reserves. Instead, you normally have to post to the corresponding expense account. Therefore, the revenue from the writing off of the transferred reserves must be posted separately and also be posted manually to Financial Accounting.

When you handle the transferred reserves on the liabilities side in a derived depreciation area, then you do not post to the accounts specified above. Instead you post to the appropriate accounts for the handling of special reserves.

You post a debit to the expense account for allocation to special reserves, and a credit to the balance sheet account for special reserves.

When you handle the reserves on the liabilities side, the required writing off of the reserves transferred to an asset takes place automatically during the periodic depreciation posting run. The system posts to the appropriate accounts for the writing off of special reserves.