Normal, early, transfer, and reversal terminations are supported.
Normal means that the ARO needs to be exercised; in the journal entries report, the ARO liability is debited to zero it out, and an ARO expense allowance is credited (which can then be applied against your actual ARO settlement costs). Early Termination means that the ARO is ended early and implies that the ARO does not have to be satisfied; income statement activity ends as of the date specified, and all balance sheet amounts are removed, with a termination gain or loss taken for the difference between asset and obligation.
Transfer Termination is almost the same as Early but is intended to be paired with a transfer addition on another ARO, on this or a different lease. See transfer add, above, for more details on this transaction. In order to pair up the ARO records and not double-count, no accretion or depreciation activity is recognized on an ARO on the date of a transfer termination (the activity of that day is recognized on the transfer addition). If you choose a transfer termination, you are given the option to automatically create a matching transfer addition ARO on another lease.
Correction is used by EZLease to indicate a mid-life revision; you may not select Correction as a termination type yourself.
Reversal reverses all activity from ARO inception to date; the net effect is as if the ARO was never on the system, but the reversal is booked on the date of the termination, so that prior reports are unaffected by the removal of the lease. You can then replace the ARO with correct information, if appropriate.