What is cost estimation plan in SAP FI-AF-ARO - Asset Retirement Obligation Management?

SAP Term: cost estimation plan

• Component: FI-AF-ARO

• Component Name: Asset Retirement Obligation Management

• Description: An overview of the planned costs for an asset retirement obligation, including the amount, settlement date, and the validity date for the cost estimation plan. A cost estimation plan can consist of any number of cost estimation items, each with its own date and settlement amount.

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• Key Concepts: 
  Cost estimation plan is a component of FI-AF-ARO Asset Retirement Obligation Management in SAP. It is used to estimate the cost of an asset retirement obligation (ARO) over its entire life cycle. This includes the initial cost of the asset, the cost of any repairs or maintenance, and the cost of disposal. The cost estimation plan also takes into account any changes in market conditions that may affect the cost of the ARO. 
  
  How to use it: 
  The cost estimation plan is used to create a budget for an ARO. This budget is then used to determine how much money should be allocated for each stage of the ARO's life cycle. The budget can be adjusted as needed to account for changes in market conditions or other factors. The cost estimation plan can also be used to compare different AROs and determine which one is most cost-effective. 
  
  Tips & Tricks: 
  When creating a cost estimation plan, it is important to consider all potential costs associated with an ARO. This includes not only the initial cost of the asset, but also any repairs or maintenance that may be required over its lifetime, as well as the cost of disposal. It is also important to factor in any changes in market conditions that may affect the cost of the ARO. 
  
  Related Information: 
  For more information on FI-AF-ARO Asset Retirement Obligation Management, please refer to SAP's official documentation at https://help.sap.com/viewer/product/FI_AF_ARO/latest/en-US.