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

SAP Term: base date

• Component: FI-AF-ARO

• Component Name: Asset Retirement Obligation Management

• Description: The starting date of a calculation. Within the framework of an asset retirement obligation valuation, a given base value on a base date is usually discounted or compounded for a specific target date.

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• Key Concepts: 
  Base date is a term used in the FI-AF-ARO Asset Retirement Obligation Management component of SAP. It is the date used to calculate the retirement obligation of an asset. This date is usually the date when the asset was acquired or when it was put into service. 
  
  How to use it: 
  The base date is used to calculate the retirement obligation of an asset. This calculation is based on the expected useful life of the asset, as well as any other factors that may affect its retirement obligation. The base date can be changed at any time, but it is important to note that any changes will affect the retirement obligation calculation. 
  
  Tips & Tricks: 
  When setting a base date for an asset, it is important to consider all factors that may affect its retirement obligation. This includes the expected useful life of the asset, as well as any other factors such as inflation or changes in market conditions. 
  
  Related Information: 
  For more information on base dates and how they are used in SAP, please refer to SAP's official documentation on Asset Retirement Obligation Management.