The ARO accretes until it reaches its scheduled end date. You may choose, in System Options, whether liability should continue to accrue after the scheduled end date; if you set the option “Continue to accrete ARO after scheduled end date using inflation rate” on the ARO tab of System Options, the liability will increase using the ARO’s inflation rate until you terminate it. If the option is not selected, accretion stops, but the liability balance remains on the books until you terminate it.
Whenever you reach the date of settling your ARO, change the Termination Type to Normal and set the date. As of that date, any accretion (and depreciation, if the date is earlier than the ARO’s scheduled end date) ends, and the asset and liability are removed. EZLease reports (in the journal entries report) an ARO expense allowance for the difference between the liability and asset at termination. This is then applied to your actual costs, and any difference is recognized as a gain or loss.