What is ARO asset in SAP FI-AF-ARO - Asset Retirement Obligation Management?

SAP Term: ARO asset

• Component: FI-AF-ARO

• Component Name: Asset Retirement Obligation Management

• Description: An asset in SAP FI Fixed Asset Accounting that represents the cost of the asset retirement obligation ARO.

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• Key Concepts: 
  ARO asset is a component of the SAP Financial Accounting (FI) module. It is used to manage Asset Retirement Obligations (AROs). AROs are liabilities that arise from the retirement of an asset, such as a building or a piece of equipment. The ARO asset component helps companies to track and manage these liabilities. 
  
  How to use it: 
  The ARO asset component can be used to create and manage ARO assets. This includes setting up the asset, assigning it to an account, and tracking its depreciation over time. The component also allows users to track any changes in the liability associated with the asset, such as changes in the estimated retirement costs or the expected retirement date. 
  
  Tips & Tricks: 
  When setting up an ARO asset, it is important to ensure that all relevant information is included. This includes the estimated retirement costs, expected retirement date, and any other relevant information that may affect the liability associated with the asset. 
  
  Related Information: 
  The ARO asset component is part of the SAP Financial Accounting (FI) module. Other components of this module include Accounts Payable (AP), Accounts Receivable (AR), and General Ledger (GL).