Reversing an asset from Projects

Hi All,

We are on 11i. I tried reversing an asset by following the below steps:

1. Mark the asset for reversal in Capital Projects Form

2. Check the capital hold check box

3. Generate & Interface Mass Additions

4. Post the Reversal lines in Fixed Assets

And I was able to get the desired result of zero cost in FA. When I did the above steps without the 2. check the capital hold check box , I did not get zero cost in FA. My question is: Is it necessary to check the 'Capital Hold" box get a zero cost for the asset in FA? If yes, what does the Capital Hold check box stand for and why is it used? And when is it not used?