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

SAP Term: settlement item

• Component: FI-AF-ARO

• Component Name: Asset Retirement Obligation Management

• Description: An entry in a cost estimation plan that is used to document the estimated costs and retirement date for an asset retirement obligation.

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• Key Concepts: 
  Settlement item is a term used in SAP FI-AF-ARO Asset Retirement Obligation Management. It is a type of accounting document that is used to record the retirement of an asset. It is used to record the costs associated with the retirement of an asset, such as the cost of disposal, the cost of replacement, and any other costs associated with the retirement. 
  
  How to use it: 
  Settlement items are created in SAP FI-AF-ARO Asset Retirement Obligation Management. They are created when an asset is retired and can be used to record the costs associated with the retirement. The settlement item can then be used to calculate the total cost of the retirement and can be used to track the progress of the retirement process. 
  
  Tips & Tricks: 
  When creating a settlement item, it is important to ensure that all costs associated with the retirement are accurately recorded. This will ensure that the total cost of the retirement is accurately calculated and tracked. Additionally, it is important to ensure that all relevant information about the asset is included in the settlement item, such as its age, condition, and any other relevant information. 
  
  Related Information: 
  Settlement items are closely related to other accounting documents such as depreciation entries and asset transfers. It is important to understand how these documents interact with each other in order to ensure that all costs associated with an asset’s retirement are accurately recorded and tracked. Additionally, it is important to understand how these documents interact with other financial documents such as invoices and purchase orders in order to ensure that all costs associated with an asset’s retirement are accurately recorded and tracked.